of the wheels to _0_ for the beginning of a new computation. Without
desiring to enter into the mechanical merits of adding machines, either
listing or non-listing machines, it is important to touch upon the
various arguments used in favor of billing machines with adding
attachments and without them.
The flat-bed machines were the first to use the combined machines. The
plan in use was to place two recording registers on the billing machine
and prove the total of each bill separately with one register, and
accumulate the totals of all the bills for the day on the other
register. Certain firms used extra recording registers for recording the
totals of extra columns on the sales sheets in which they analyzed the
sales according to classes of goods or some other classification. Some
firms did not add the bills when making the extensions of the prices and
quantities, but left the additions for the adding machine. The only
draw-back to this plan was that if the operator copied a wrong total
from the register dial it caused trouble. This fault, if fault it may be
called, as it is not the fault of the machine, but of the operator, has
been corrected by placing a subtracting device on the late models of
combined billing and adding machines, whereby the subtracting device is
thrown into action when the total of the bill is being written. If the
correct amount of the bill is written on the invoice, the dial figures
all turn to ciphers, which indicates that the amount has been correctly
transcribed by the operator. Other improvements will likely follow in
the many machines which are being placed upon the market. See Fig. 29 on
Page 67.
Some firms prefer to do all the billing as one operation, and use a
separate or computing machine, as the case may be, for proving the
additions at the end of the day. The reason is that by having two
separate machines they can be used by different people during the day
for different work.
If computing machines are needed for adding, multiplying, and taking off
discounts, the non-listing machines are recommended, as they are
key-driven. If adding machines are needed when printed lists are wanted
of all additions, then listing machines are recommended. The general
public has recognized that each class of machine has its separate use.
Some firms check the totals of listing machines with non-listing
machines, in order to save time and paper. Non-listing machines are used
for taking a record of rolls and yards of cloth during inventory time,
and later are used to multiply the extensions. Some dry goods firms hire
expert operators at a dollar an hour to do this class of work, as it can
be done in one-fifth the time that it would otherwise take. For
instance, an example in multiplication, such as _432_ × _235_, would
take approximately ten seconds to write down, multiply, and set down the
figures. With a multiplying machine mentioned above, it can be done in
two seconds.
With listing adding machines, equally valuable results can be obtained.
In certain classes of work, such as collection letters in banks where
there are rows of figures representing the various checks, and
typewritten information, such as description of endorsements, it is much
faster to place the sheets in the adding machine and list the amounts
thereon and automatically print the total with the adding machine. This
avoids the trouble due to operators printing wrong totals on the billing
machine. The typewritten information is then put in on the typewriter or
billing machine. There is this to be said, however, if an operator
prints a wrong amount on a listing adding machine, the answer will be
incorrect, but the machine will print a correct total of the figures
printed by the machine. A listing machine can be equipped with a wide
carriage and used for printing lists of figures just the same as a
typewriter. Time should never be wasted printing a statement covering
rows of tabulated figures on any typewriter, and then taking the
statement to an adding machine and adding the columns to prove them, if
it can possibly be arranged to make up the entire statement on the
listing machine. Listing machines are now prepared to manifold at least
two extra copies, and are equipped with column tabulators.
For adding a number of columns, with or without a grand total column at
either the right or left side of the book or sheet, and where the items
are written one at a time in _different columns_, the combined
typewriter and adding machine is recommended. One such is shown in Fig.
22.
COLORED SHEETS
The "colored sheet system" indicated below makes it unnecessary to refer
to the written matter for distribution. A glance indicates the
department or service for which every slip is intended. The distribution
may be as follows:
The office record (register) may be filed numerically;
The order book copies alphabetically;
The requisitions by departments;
The shipping instructions, chronologically;
The salesman's records, territorially;
The cost sheets, according to classification.
One copy may also be filed geographically for comparison of results.
This furnishes a complete record and makes reference easy.[6]
Footnote 6:
As a general rule, the "order acknowledgment" has been handled
separately, although it is possible to include it in the one writing.
This summary illustrates the use of the color scheme, and gives a brief
hint of the plan usually followed in filing order sheets for various
departments. It should be remembered that the best billing and order
plan in the world can be made the most abject failure, if proper
attention is not given to the proper filing of sheets.
[Illustration:
Fig. 22. Combined Typewriter and Adding Machine. _Elliott-Fisher Co._
]
For example, if clerks in looking for a certain order could always give
the order number, but not the name of the customer, it would be wrong to
file the orders alphabetically; in such cases, file the orders
numerically. Always file papers according to the information which the
clerk or executive will have at hand when looking up the same.
Sometimes, papers will be just as easily found when filed numerically as
alphabetically.
=Reference Information.= One very important feature to remember in
designing forms is to place all reference information on the right-hand
side of the sheet. In leafing loose sheets held in binders, it will be
easy to find the desired sheet if this plan is followed; but, if the
reference numbers are placed on the left side of the sheet, it will be
necessary to open the binder relatively wide to see each number.
In the illustration, Fig. 23, it will be noted that the order number is
properly placed, and that the printed headings are aligned horizontally
at the back, which permits all typewritten matter to be started evenly.
The value of this point was touched upon in a previous chapter, as to
saving of time in the execution of the work. In this particular form,
however, there is typewritten matter to the left of the headings, such
as _account of_, _ship to_, etc. The marginal stop on the billing
machine should be set for the first typewritten matter, and tabulator
stops used for all matter to the right on each line.
COMPOUND FORMS
One of the most effective means of short-cutting work, where the nature
of the business will permit, is through the use of compound forms. These
forms derived their name from the combination of order and billing work
on one set of sheets and accomplish in one operation, sometimes in two,
all the clerical work incident to the receipt, registering,
acknowledgment, billing, charging, and shipping of an order.
It can be readily seen that if a firm can fill its orders completely, or
almost so, that there is no use to wait until the order is filled before
billing it. It is a great deal easier to place another sheet along with
the order forms and use it for an invoice. It is generally placed as the
top sheet of the set, and therefore it is the original.
=Goods Shipped for Entire Order.= If the nature of the business is such
that the firm can always fill its orders completely, it is perfectly
safe to enter prices, make the extensions, and complete the invoice,
with the possible exception of the date when the goods are finally
shipped, if they cannot be sent out the same day. In such cases, a
printed heading is provided on the invoice, opposite which the shipping
date is typewritten. This then becomes the date of invoice.
[Illustration:
Fig. 23. The Colored-Sheet System. A Different-colored Sheet is Used
for Each Department
_Underwood Typewriter Co._
]
=Goods Almost Completely Shipped.= If it is possible that one, two, or
three items cannot be shipped at all, or in part only, it is the custom
to hold the invoice (and copy, or copies, when there are any) in the
office, arranged alphabetically according to customers, pending receipt
of information from the shipping department as to quantities, weights,
etc., of goods shipped. This invoice is an exact typewritten duplicate
of the balance of the order forms, and has the heading for quantities to
be shipped and, usually, prices for each article. Neither the extensions
of the items nor the footing of the bill have been made. Generally, a
copy of the order showing the quantities, weights, or measures marked
thereon is handed to the office. The copy of the invoice is then placed
in the machine, and the prices, extensions, and footings made to
correspond with the items which have been shipped. The question arises
in regard to the items which have not been shipped. Some firms print on
the bottom of each invoice the sentence: _All items which are not priced
nor extended have been "back-ordered" and will be shipped later._ Other
firms typewrite an _X_ in the price column, or number the items which
have not been shipped. They then make a written explanation on the
bottom of the invoice regarding the date at which the balance of the
goods will be shipped. In some lines of business this plan tells the
customer not only what he ordered, but what has been shipped and when
the balance will be shipped. The memo on the bottom of the invoice also
saves the writing of letters to customers.
In other lines of business, this plan would be absolutely unfit—for the
reason that certain firms do not wish to call the customer's attention
to the items which have been omitted.
Compound forms generally have two columns at the left—one for the goods
ordered, the other for the goods shipped. If this were not provided, it
would be necessary to erase quantities in all instances where a
different quantity were shipped from the quantity ordered.
Fig. 24 is a good illustration of forms for a line of business which
always has the goods in stock. The various brands of goods are printed
in the body of the invoice. All that is necessary is to write the
quantities, prices, extensions, and footings. Four copies are
manifolded—invoice, warehouse order, house record, and collection
record.
RETAIL DRY GOODS BILLING
The retail dry goods houses and department stores use a form of billing
which is different from any other, in that the bills are rendered to the
customer once a month only. There are other lines of business which
render their bills monthly, and which use the same style of billing.
A folded form is used, the top sheet when completed at the end of the
month is mailed to the customer. The second or duplicate is retained for
the record of purchases.
When a customer makes a purchase, the saleslady makes the charge in her
sales book. One copy goes with the goods to the wrapping desk, the other
goes to the cashier's desk. The wrapper cannot handle a package without
a duplicate sales slip. The packer removes from his duplicate slip a
stub bearing the same number as the slip. This is to prevent goods being
removed from the house without proper authority. The cashier retains the
slip if cash has been paid, but passes the slip on to the auditing
department, if the slip is marked by the saleslady _charge_.
[Illustration:
Fig. 24. Compound Forms, Showing Invoice and Office Records
_Remington Typewriter Co._
]
In large stores like John Wanamaker's, the customers are given by the
credit man a brass check with their number marked thereon. This shows
each clerk with whom they deal that they are entitled to credit, without
having them identified each time they make a purchase. In smaller
cities, the clerks become familiar with all the charge customers, and
any plan of this character is not needed.
The sales slips are all numbered from _1_ to _50_, and the auditing
department checks back each day all the slips of the different
sales-people to see if all the slips have been accounted for. Some
stores have a chart on the cashier's desk _with the clerk's number at
the top of each column_, and the check numbers listed serially in each
column, as shown in Table I.
Table I
CHART FOR CHECKING RETAIL SALES SLIPS
══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══
1│ 2│ 3│ 4│ 5│ 6│ 7│ 8│ 9│10│11│12│13│14│15
──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──
1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1
2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2
3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3
4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4
5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5
6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6
7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7
8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8
9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9
10│10│10│10│10│10│10│10│10│10│10│10│10│10│10
──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──
As fast as the checks are received at the cashier's desk they are
checked. If one of the clerks should sell goods to a friend, and send
one slip to the packer, but destroy the cashier's copy, the fraud would
be detected, as the next slip which would be sent in would show by the
number that the previous one was missing. The matter could be
investigated immediately. The auditing departments of different stores
handle the detail of the work in various ways—which, however, are about
the same. Some stores, after they prove that there are no slips missing
by checking the slips by the serial numbers, add them up on adding
machines. As some stores do not care for a list of the slips, they use a
non-listing machine, such as the comptometer. Other stores add the sales
of each clerk separately, and add the totals of all the clerks to secure
the total sales. The total sales of each clerk are then entered on a
statistical sheet which shows a comparison of the total daily sales of
each clerk for the month, as shown in Table II.
The slips are then sorted according to departments, then added again,
and similar information written on statistical sheets with the
department numbers at the top, instead of the clerk numbers. The grand
totals must agree to prove the work.
The slips are then sorted according to customers. If Mrs. J. B. Jackson
has bought goods in three different departments, the auditing department
will pin the three slips together and mark the total of the slips to be
charged to her account on the back of the under slip. If there are
twelve bill clerks and twelve billing machines, all the slips will then
be assorted into twelve lots, each lot representing the number of
accounts taken care of by each bill clerk.
TABLE II
COMPARISON OF DAILY SALES OF CLERKS
══════╤═════════╤═════╤═════╤═════╤═════╤═════╤═════╤═════╤═════
│Clerk No.│ 1 │ 2 │ 3 │ 4 │ 5 │ 6 │ 7 │ 8
──────┼─────────┼─────┼─────┼─────┼─────┼─────┼─────┼─────┼─────
Total │ Days │ │ │ │ │ │ │ │
335 38│ 1 │30 50│55 45│47 70│35 35│56 78│34 25│40 56│34 79
492 53│ 2 │56 74│87 55│9 76 │87 23│54 09│19 89│86 75│90 52
etc. │ etc. │etc. │etc. │etc. │etc. │etc. │etc. │etc. │etc.
──────┼─────────┼─────┼─────┼─────┼─────┼─────┼─────┼─────┼─────
│ │ │ │ │ │ │ │ │
──────┴─────────┴─────┴─────┴─────┴─────┴─────┴─────┴─────┴─────
Each bill clerk receives the slips in alphabetical order. The monthly
folded bills are arranged in the same order. These are held in binders—a
special kind, such as the Tengwall, being used—from which the bills can
be easily and quickly removed. Some firms prefer to file daily in
vertical files the current monthly bills, upon which the charges are
being made.
Some machines, such as the Smith Premier and the Elliott-Fisher, have a
carbon roll on their machines for manifolding these duplicate folded
bills without handling the carbon paper. These attachments were
especially designed for this particular work.
After the operator has entered the charges of the three slips for Mrs.
J. B. Jackson, or any other customer having more than one slip for the
previous day's purchases, she compares the total she has placed on the
bill with the total marked on the back of the slips by the auditing
department.
Fig. 25 shows samples of folded monthly retail bills. The black showing
under the top sheet, which is turned over, is the carbon paper used with
the bills when made on machines not equipped with the carbon-roll
attachment. Some firms place the carbon paper between the sheets at the
beginning of the month, and leave it there; others place the carbon
paper between the sheets for every charge which is made to the bill.
After all the charges have been made, the operator adds up on the adding
machine the totals of all the last charges on the various bills to which
charges have been made that day. This total must agree with the amount
which the auditing department handed over to each bill clerk to be
entered upon these bills. The Smith Premier and Elliott-Fisher have
tally-strip devices which automatically record the total of each charge
made to all the various bills each day. This paper strip, when added up,
must agree with the total of the auditing department figures.
At the end of the month, about the 26th, most firms begin to total the
columns of the bill. The final total of each bill added to the total of
every other bill must give a grand total equal to all the charges for
the month. This proves that each bill has been correctly added. The
balance due from the previous bills is then brought forward, and any
payments made during the month deducted, and the bill footed. All
credits for returned goods are entered during the month the same as the
charges, excepting that they are placed in a separate column provided
for that purpose, and deducted at the end of the month from the charges.
Some firms post the total charges and credits for the month to the
ledger in two lump sums. Other firms prefer to post the total of each
day's charges to the ledger daily, instead of letting the posting go
until the end of the month. This is a matter to be decided from a
bookkeeping standpoint. If the bookkeepers have the current month's
charges in the ledger, it saves referring to the bills at the bill
clerk's desk for information or the current month's charges.
[Illustration:
Fig. 25. Monthly Statements of Retail Dry Goods Houses
_Remington Typewriter Co._
]
[Illustration:
Fig. 26. Smith Premier Device for Inserting Dry Goods Billing Forms
Evenly
]
After the bills have been sent out, the duplicates are filed away. The
best known way to file them is alphabetically; each customer's bill for
the various months together. This is in contrast to the plan of filing
each month's bills away separately. If it is wished to refer to any one
person's charges for a given number of months it is necessary, under the
latter plan, to refer to several binders.
[Illustration:
Fig. 27. Remington Billing Machines
]
One of the devices which did more to permit cylinder machines to do
billing successfully is shown in Fig. 26. Formerly, when two or more
sheets of paper were inserted in a cylinder machine, the small feed roll
which rests against the large rubber platen, fed the under papers at a
different speed than those sheets which rested against the large roll.
The result was that the papers were fed unevenly into the machine. When
removed, it was impossible to replace them in the same relation in which
they were before.
The device illustrated furnishes a resting place for evenly placing all
the sheets in the machine by pressing a release lever which draws the
feed rolls away from the large roll until the papers or sheets are
properly placed in the machine. Started evenly, they will invariably
feed evenly.
[Illustration:
Fig. 28. Smith Premier Dry Goods Billing Machine
]
This is of particular advantage in retail dry goods billing, where a
sheet is placed in and out of a machine as many as thirty times a month.
If the top of the bill is each time started from the same starting
point, namely, the top of the statement, it will feed correctly to the
next writing point on the statement without any adjustment. The
Remington, Fig. 27, and Underwood machines are equipped with devices for
the same purpose. The Smith Premier, Fig. 28, and the Elliott-Fisher
machines are equipped with rolls of carbon which automatically manifold
folded monthly bill forms.
DEVICES OF THE FUTURE
One of the successful devices which is being perfected at this time is a
combination of an adding machine and a cylinder billing machine which
can be operated as a combined machine or separately as two machines, and
may be actually removed, one from another. The idea is to have a platen
or roll which can act as shuttle between the typewriter and the adding
machine. By pressing a button, the roll travels from the typewriter to
the adding machine. This scheme has the same advantage as has the farmer
who can operate his horses singly or in pairs.
The adding machine people have been experimenting and gradually
increasing the printing capacity of their machines. They are now able to
print the different months of the year and some other abbreviations for
monthly statement work. Further developments can be expected along this
line. Adding machines which list are a very important factor in office
work and their capacity is so large for certain classes of work that
space does not permit of detailed treatment here.
[Illustration:
Fig. 29. Adding and Subtracting Machine Combined with Cylinder Billing
Machine
_Remington Typewriter Co._
]
While marvelous improvements have been made in the last decade, the next
one promises equally well, especially in the adding-machine line.
REVIEW QUESTIONS.
PRACTICAL TEST QUESTIONS.
In the foregoing sections of this Cyclopedia numerous illustrative
examples are worked out in detail in order to show the application of
the various methods and principles. Accompanying these are examples for
practice which will aid the reader in fixing the principles in mind.
In the following pages are given a large number of test questions and
problems which afford a valuable means of testing the reader's knowledge
of the subjects treated. They will be found excellent practice for those
preparing for Civil Service Examinations. In some cases numerical
answers are given as a further aid in this work.
REVIEW QUESTIONS
ON THE SUBJECT OF
COMMISSION AND STORAGE
1. What advantages are derived from a division of the ledger? Name the
three most common subdivisions of the ledger.
2. What accounts are kept in the purchase ledger; in the sales ledger;
in the general ledger? Under what circumstances should accounts with an
individual be kept in both purchase and sales ledgers?
3. What is a controlling account? What do the balances of sales and
purchase controlling accounts represent? From what sources are the
debits and credits to these accounts derived?
4. When loose-leaf order blanks are used, what is the customary routine
followed in filling and charging orders?
5. For what purposes are special distribution columns in a sales book
used?
6. To what accounts in the general ledger are total purchases, as shown
by the invoice register, posted? In what way are these two accounts
distinguished?
7. Describe briefly the cash journal, and explain how it is used? What,
if any, objection can be raised to making entries which do not involve
an exchange of cash, or its equivalent, in the cash journal?
8. Why is the expense account divided? Name some of the accounts
representing different classes of expense.
9. What is meant by petty cash, and how should the account with petty
cash be handled?