Ala. Admin. Code r. 20-X-9-.01

Current through Register Vol. 43, No. 1, October 31, 2024

Section 20-X-9-.01 - Liquor Wholesale Record Requirements

(1) All liquor wholesale licensees shall file a report of all liquor and wine containing spirits received during the preceding month, schedule of all sales, a stock report and a tax return with a remittance of tax on any shortages in inventory. Filing forms will be furnished by the ABC Board. These forms shall be received by the ABC Board from the licensees on or before the 20^th day of each month.

(2) Any inventory of liquor and/or wine containing spirits shall be segregated from all other inventory of alcoholic beverages within the licensees' warehouse(s).

(3) A physical inventory of liquor and/or wine containing spirits may be taken by ABC Board representatives during normal business hours. ABC Board representatives may examine any records of the liquor wholesale licensee.

(4) Liquor wholesalers shall provide a suitable place to conduct record examinations at their principal place of business during normal business hours. The wholesaler's personnel shall assist ABC Board representatives in taking periodic inventories of alcoholic beverages on hand and shall provide any necessary information required to expedite any audit. Inventories taken jointly by a wholesaler's employees and ABC Board representatives shall be certified by all parties thereto. It shall be the responsibility of the wholesaler to ensure that the inventory is accurate. No changes shall be allowed in said inventory count subsequent to the departure of the ABC Board's employees from the wholesaler's licensed premises.

(5) All liquor wholesalers shall maintain records at their business, reflecting the following:

(a) All liquor received by supplier, brand name, number of cases, number of containers per case, liters per container, manufacturer's invoice number, and date received. All liquor received in the wholesaler's warehouse shall be acknowledged by signature of a representative of the wholesaler on the receiving documents. The date received shall also be indicated on the documents. All liquor received shall be recorded and reported to the ABC Board as a receipt in the month the liquor was received.

(b) All liquor sold, furnished, or delivered shall have a wholesaler's invoice available which shall bear information as to the recipient's name, complete address, brand name, number of cases, number of containers per case, volume per container, total liters per case, date of delivery, invoice number, and if required, the licensee's name, complete ABC license number, and amount of sale. Stamps may be used but cannot replace signatures.

1. Sales invoices shall be prepared for sales made to the ABC Board and must contain the information listed in (5)(b).

2. Invoices shall be prepared for all liquor furnished as no charge as samples, gifts, and gratuities allowed under 20-X-8-.07(a), and for promotional/advertising liquor furnished civic, charitable, fraternal, or similar organizations as allowed. These invoices must contain the information listed in (5)(b), and the purpose of the promotion. An employee, officer or owner of a wholesale business may, on the premises of the wholesaler, be offered a tasting of liquor to determine items for potential purchase by the wholesaler or to develop new marketing strategies of existing product offerings. The wholesaler shall be responsible for the payment of taxes due the State of Alabama for liquor furnished in this manner.

3. Sales invoices shall be prepared for sales made to military installations and must contain the information listed in (5)(b). In addition, all stock depletions claimed for sales to military installations shall be evidenced by appropriate proof of payments to include check copies, check stubs, or a method of electronic transfer of funds that has been approved by the ABC Board with any supporting documentation provided by the military installation. The wholesaler must provide evidence of payment of the liquor sales with federal funds upon audit, or disallowance of the stock depletions will be made, and taxes assessed.

(6) Stock depletion for damaged, broken or otherwise unsaleable merchandise will be allowed as a deduction from the monthly stock inventory, but only when the destruction or evidence of breakage of said merchandise is witnessed by an ABC Board representative. An affidavit shall be prepared establishing the date destroyed, when and how destroyed, the number of packages by size container and number of containers per package, brand/label, ABC code, and the signature of the wholesaler's representative and the ABC Board representative witnessing said destruction. A copy of this affidavit shall be retained by the wholesaler. The ABC Board representative witnessing the destruction shall send the original affidavit to the ABC Board. All destruction shall be made in a manner to comply with EPA rules regarding the disposal of alcoholic beverages. Responsibility for compliance with the EPA rules rests with the wholesaler.

(7) The liquor wholesaler may claim stock depletion against the monthly inventory for merchandise exported if the export is made and documented in the following manner. The wholesaler shall retain a duplicate invoice giving the name of the person, firm, corporation or association of persons to whom shipped, delivered or sold, date of sale or shipment, and the quantity of such merchandise. The wholesaler shall retain a freight, express or postal receipt for such merchandise showing the same was delivered to a common carrier engaged in interstate commerce or to the U.S. Postal Service. If said merchandise is delivered to another state by a wholesaler using its own transportation, said wholesaler shall retain a receipt signed by the purchaser from the other state. Evidence of payment by a party purchasing export liquor shall be on file with the wholesaler to verify export sales and may be in the form of check copies or check stubs.

(8) The following are allowable as stock depletions if properly documented when the wholesaler computes monthly liquor tax liability:

(a) Sales to military installations, sales for export, and sales to the ABC Board.

(b) Breakage or unsaleable merchandise verified as destroyed by ABC Board representative.

(c) Merchandise lost through break-ins and/or robberies when supported by police investigation reports.

(d) Merchandise short shipped by suppliers and merchandise returned to suppliers only if supported by a credit memorandum from the supplier. The credit memorandum must list quantities, sizes, and volume.

(e) Other appropriate circumstances when approved in writing by the ABC Board. If any stock depletions taken cannot be verified by the ABC Board, the deductions will not be allowed and the tax on such liquor will be due and payable.

(9) In additions to the above, each wholesaler shall maintain the following minimum information:

(a) Liquor stock reports which categorize merchandise on hand at the beginning of the month, merchandise received during the month, merchandise disposed of during the month, and merchandise on hand at the end of the month. All information contained on such reports shall be supported by adequate documentation. Reports shall be completed on a monthly basis. The following schedules shall be prepared monthly as preliminary documentation for the stock totals.

(b) Schedule of sales of liquor to the ABC Board during the month.

(c) Schedule of sales of liquor to military installations during the month.

(d) Schedule of sale of liquor for export during the month.

(e) Schedule of promotional/advertising liquor furnished or delivered during the month.

(10) Each wholesale liquor licensee shall maintain with the ABC Board current listings of all items distributed by brand, label, and size container.

(11) All records as to the receipt of liquor, inventories on hand, and sales of said liquor shall be available from the wholesaler to the ABC Board upon request. Said records shall include but not be limited to: purchase invoices, shipping documents, sales invoices, bank deposits, and cancelled checks. Records shall be maintained by the wholesaler for the period of time specified by Section 28-3-7, Code of Ala. 1975.

(12) The wholesaler shall be responsible for the payment of taxes due the State of Alabama for any monthly inventory shortage. The shortage shall not be netted with any inventory overage.

Ala. Admin. Code r. 20-X-9-.01

Repealed and New: Filed August 21, 1998; effective October 16, 1998.

Amended by Alabama Administrative Monthly Volume XL, Issue No. 01, October 29, 2021, eff. 12/13/2021.

Author: ABC Board

Statutory Authority:Code of Ala. 1975, §§ 28-3-7; 28-3-9; 28-3-49.