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Home > PDF Reports > Charts > Inventory Accuracy Scorecard > Theft Alert


 
A Theft Alert showing on your Inventory Accuracy Scorecard means Mango has picked up on a theft-for-cash signature in your store.  The  WD Rtn Count Type on your Count Sheets is auditing SKUs recently returned that were a) not purchased in a long time and/or b) are expensive items. If there is shrinkage when these SKUs are counted it fits a theft-for-cash signature. If enough of these audits show this signature then you will see the Theft Alert in your Inventory Accuracy Scorecard!



SKU-level detail of alerted SKUs can be found in your Shrink Report.pdf (Review Reports email). Many of these will be in your Variance Worksheet, the remainder of alerted SKUs will be in your Adjusted Shrink section. These SKUs will say CS WD Alert in the Research Hint column.
 

In the example above, we see two faucet stems that were returned (returned to stock, type R) at the register and when audited on Mango's Count Sheets (WD Rtn. Count Type) were short by the amount returned! Furthermore, you see the last sale of both these SKUs is "never". Clearly, theft-for-cash has to be ruled out and further research should be performed: 

Theft Alert - Cause Scenarios
1) The item's initial count was wrong
2) The item was counted incorrectly via the Count Sheet process (the item was still in the Returns bin for example)
3) The item was defective but the cashier rung it as a Return to Stock "R" Return Type. (a common cause)
4) The item was stolen and returned for cash

Scenarios 3 and 4 are critical:

#3 - Casher Error: commonly it is found that a cashier does not know how to apply the "R" and "D" Return Reasons correctly for return-to-stock and defective merchandise.  This causes persistent inventory inaccuracy, out-of-stocks, and labor researching and fixing these mistakes.  The cashier needs to be trained and subsequently tested to make sure he/she is capable of making the correct choice.

#4 - Theft for Cash: a less likely outcome, however, and unfortunately, it does happen with some regularity (see a typical email below), and many times it is internal theft.  Researching these as early in the month as possible is helpful as many video security systems have limited capacity to store data.

Email we received after a Theft Alert at a store:
"...I had to fire a person today after Mango Report
highlighted a potential theft item.  I was able to confirm indeed, the
person was stealing from me.  So thanks, I think.  I hate thieves,
especially ones you thought you could trust..."