Produced by Donald Cummings, Adrian Mastronardi, The
Philatelic Digital Library Project at http://www.tpdlp.net
and the Online Distributed Proofreading Team at
http://www.pgdp.net (This file was produced from images
generously made available by The Internet Archive/American
Libraries.)
Transcriber’s Note: This book has two Figure 13s, but no Figure 29.
Post Exchange Methods
by
CAPTAIN PAUL D. BUNKER
UNITED STATES ARMY
A manual for Exchange Stewards, Exchange Officers,
Members of Exchange Councils Commanding
Officers, being an exposition of a simple
and efficient system of accounting which
is applicable to large and to small
Exchanges alike.
_General Agents_
THE EAGLE PRESS Service Printers
Portland, Me.
Copyright 1915
The Eagle Press—Portland, Me.
All rights Reserved
PREFACE.
Our Post Exchanges are usually in charge of officers with little or no
experience in book-keeping, their assistants are usually enlisted men and
not professional clerks and accountants, and there is, at present, no
codified or standard system prescribed for handling this business. Some
parts of the Post Exchange Regulations have become antiquated through
the developments of modern business methods such as the “Voucher Check
System”.
In view of these facts it is felt that there is a real need of this book,
and it is hoped that the methods herein set forth will prove to be a step
toward a uniform system that will be adopted in all Exchanges, one that
will reduce overhead charges, eliminate unnecessary labor and improve
unsatisfactory profits.
The writer intended discussing several other important points, such as
Journal Entries, Mail Order Business, Consignment, Adding Machines,
Loose-leaf and Card Index Filing, etc., but circumstances over which he
had no control prevent, at present, any addition to these pages.
It is desired to give credit to Captain Henry M. Dichmann 24th Infantry,
who by his work in connection with the Post Exchange at Fort Slocum, N.
Y., was the inspiration for this work, and to Mr. James Parker, Cashier
of the same Exchange, for valuable assistance rendered.
PAUL D. BUNKER,
Captain, Coast Artillery Corps.
Fort Hancock, N. J., June 7, 1915.
* * * * *
“RANGER” BICYCLES
[Illustration]
Follow the Flag.
Your choice of 94 Styles, Colors and sizes.
More “RANGERS” sold each year than any other make.
TIRES, SUNDRIES AND REPAIR PARTS For all makes of bicycles.
LARGEST STOCK IN THE WORLD
Catalogs and Special Prices For Post Exchanges free for the asking.
MEAD CYCLE CO., CHICAGO, U.S.A.
Address Military Department
* * * * *
[Illustration: TAYLOR ATHLETIC SUPPLIES
are correct in detail. They are way ahead of the ordinary.
ATHLETIC OFFICERS
can rest assured of quality, prompt service and unfailing personal
consideration from
Alex. Taylor
ALEX. TAYLOR & CO.
ATHLETIC OUTFITTERS
26 E. 42d. ST., NEW YORK
Send for Catalog and quotations]
* * * * *
H. KOHNSTAMM & CO.
(Established 1851)
MFRS. AND DEALERS IN
STANDARD LAUNDERS’ MATERIALS
CHICAGO: 83-91 PARK PLACE
26-28 N. FRANKLIN ST. NEW YORK
Warehouse stocks for prompt deliveries at 25 centrally located cities.
Send for latest catalog.
FACTORIES: Brooklyn, N. Y. and Camden, N. J.
* * * * *
PRINTING
EXCHANGE AND ORGANIZATION SPECIALTIES
ANYTHING FROM A CARD TO A BOOK.
THE EAGLE PRESS
PORTLAND, MAINE
E. W. Kilbourne, Proprietor
(Formerly Sergt. U. S. A.)
* * * * *
COUPON BOOKS
TO BE EFFECTIVE, MUST BE
Absolutely Accurate
[Illustration]
_The_
SOUTHERN COUPON CO.
Are exclusive manufacturers of every kind of COUPON BOOKS, and owing to
their perfect checking system, are in position to guarantee absolute
accuracy, perfect workmanship and highest quality.
Each Coupon is Numbered
To correspond with number on cover, hence even detached coupons can
readily be identified to their respective book—a great advantage.
WRITE TO-DAY FOR SAMPLES AND PRICES TO
THE SOUTHERN COUPON COMPANY
Box 346 BIRMINGHAM, ALA.
* * * * *
LOWEST POSSIBLE PRICES TO POST EXCHANGES AND SHIP STORES
The Army and Navy Co-Operative Company is splendidly equipped to serve
Post Exchanges and Ship stores WELL.
By WELL, we mean:
Offering reliable, fresh, new merchandise at the lowest possible
wholesale prices.
Offering large assortments of merchandise to select from.
Offering efficient service and quick deliveries.
Buying from the Army and Navy Co-Operative Company means more sales and
larger profits. Write for our Prices on Such Articles as you may need.
ARMY AND NAVY CO-OPERATIVE COMPANY
NEW YORK STORE AND GENERAL OFFICES
16 East 42nd Street, near 5th Ave., New York
Store
1123-5 So. Broad Street
Philadelphia, Pa.
Store
721-7 17th Street N. W.
Washington, D. C.
TABLE OF CONTENTS.
PAGE
Post Exchange Methods 1
Desiderata.
Charge Sales 2
General—Method of Making—Daily Check
Summary—Recording—Consolidating Credit
Transactions—Settling Dead and Live Records.
Cash Sales 29
General—Cash Book.
Coupon Sales 33
General—Kinds of Coupons—Frauds—Regulations—Issuing—Pay
Table Procedure—Coupon Sales.
Stock Records 50
General—Inventories—Merchandise Purchased—Transfers Between
Departments—Consolidating Transactions—Checking Stock and
Sales.
Purchase Records 60
General—Purchase Orders—Purchase Record—Payments—Voucher
Check System—Cash Disbursements.
The Ledger 72
General—Make-up—Ledger Accounts—Posting the
Ledger—Balancing.
Monthly Statements 81
General—General Balance Sheet—Surplus and
Adjustments—Statement of Income and Profit and Loss.
Pay Rolls 87
Figuring Selling Prices 89
Laundries 92
General—Bills Receivable—Piece Work—Damage
Report—Claims—Inventories—Pay Rolls—Miscellaneous Books.
Auditing 99
General Duties Auditor’s Statement.
Cash Registers 103
Conclusion 106
* * * * *
ECONOMICAL
Use roll printed stationery and carbon, eliminating assembling of loose
printed blanks and carbons—all automatic—no wasted effort.
[Illustration]
EFFICIENT
Whatever is written upon the original appears fac-simile on the duplicate
and triplicate alike. A loading consists of about 500 sheets.
[Illustration: SHOUPERIOR MANIFOLDER
RECORDER]
In use in U. S. Army Posts, Naval Stations and ships for ten years.
POSITIVE ALIGNMENT AND REGISTRATION
The SHOUPALIGNER our newest device has special features of automatic
alignment and registration of the form with automatic measured throw and
stop. Absolutely essential where duplicates and triplicates are printed,
requiring exact registration and alignment with the original. Our Service
Department serves you with the most economical and efficient systems for
the results desired.
AUTOGRAPHIC REGISTER CO., HOBOKEN, N. J.
* * * * *
ALL BLANK FORMS SHOWN IN POST EXCHANGE METHODS CAN BE OBTAINED AT LOWEST
PRICES, AND IN ANY QUANTITY
FROM
THE EAGLE PRESS, PORTLAND, ME.
PIONEER PRINTERS TO THE ARMY
* * * * *
ENGRAVING
STEEL DIE EMBOSSING
PLATE PRINTING
POST AND ORGANIZATION STATIONERY
_THE EAGLE PRESS_
_Portland, Me._
POST EXCHANGE METHODS.
The general methods of conducting a Post Exchange are laid down in
official orders and considering the categorical nature of these orders it
would seem that the systems in all Exchanges should be almost identical.
Such, however, is far from the truth, as there are almost as many
systems as there are Exchanges, and a person in charge of one Exchange
might have to learn considerable new matter before he would be able to
administer the affairs of another Exchange. This variety of systems also
causes trouble to auditing officers, exchange councils and to inspectors
when they have occasion to go over the books. Some of the systems are
unsound in minor particulars, and most of them are poorly designed. All
trouble of this nature could be avoided by devising a standard system and
installing it in all Exchanges. The advantages of such a proceeding would
be manifold and there would be no important disadvantages. In this essay
an attempt has been made to evolve such a system, one applicable to any
Exchange, representing the best points of many Exchanges and including
at all possible points the labor saving results of modern methods. The
system here described is not the embodiment of theory alone, but has been
through the test of actual trial and has given thorough satisfaction.
In devising any such scheme we must presuppose certain desiderata:—
1. The Exchange Officer can spend but a small portion of his time in the
Exchange, and yet he must have accurate knowledge of what the business is
doing. It is therefore essential that our records shall show accurately
and concisely all the data that are necessary to a full understanding of
the condition and operations of the business.
2. It is not enough to have a system which will enable us to render a
clear statement at the end of the month, we should be able to close our
books at any time and get out our financial statement in the minimum time.
3. Our system should be such as to minimize the possibilities of
peculation. It is often said that there is no system which cannot be
beaten, but there are systems which cannot be defeated for any great
length of time. Therefore, our system must reduce to a minimum the time
during which graft or theft can work undisturbed.
4. The system must be so simple that it will not require exceptional
ability at any point in order that its provisions may properly be
carried out. This makes it easy to break in new clerks, and enables them
to perform their duties in a more satisfactory manner.
5. The system must not be so cumbersome that it will delay the making of
sales. This is highly important. Every reader of this will undoubtedly
have vivid recollections of his experiences in department stores,
“waiting for change.” It is better to lose a dollar than to disgust our
customers and drive them elsewhere.
The above requirements cannot but cause our system to be somewhat more
expensive than that used in a “one-man store”. In the latter instance,
as a proprietor will not cheat himself, the third requirement has, in
general, no effect. The other requirements, however, will still hold, and
even gain in importance. How many merchants have we seen who _thought_
they knew all about their business, but who in reality knew very little.
They did not even realize that slipshod methods curtail credit and beget
losses of various sorts.
In describing this system we shall take up the various features in the
order in which they will be found easiest to install. For instance,
charge sales are discussed first because, regardless of the system of
handling these sales that may be in use by any Exchange, it will be
found that to change to the system here described, before changing any
other part of the system, will cause no confusion in the other books. In
other words, if your system be changed according to the order in which
the different parts are discussed herein, you will find that you have
gradually installed a system which may be entirely different, yet you
have caused no confusion in your books by the transition.
CHARGE SALES.
General.
This item includes the sale of merchandise to (1) officers, (2)
civilians, (3) enlisted men authorized to buy on credit. Such sales are
practically cash, being paid, usually, within a very short time.
The practice of extending credit to civilians is not encouraged by the
authorities and the Exchange Officer should secure permission beforehand
in case it is desired to transact this kind of business. In some cases
of isolated posts it is to the best interest of the government that
civilians employed or living on the post be allowed credit at the
Exchange, as it might otherwise be impossible for the Government to
retain their services or for the civilians to subsist themselves. It is
to take care of such cases that this feature is mentioned. In opening
a charge account with a civilian, care must be exercised to prevent a
probability of loss to the Exchange, as one bad account might wipe out
the profits from all such accounts for a considerable time. If a civilian
is deserving of the privilege of purchasing at the Exchange he should
have no objection to conferring with the Post Exchange Officer and making
satisfactory arrangements with his employer.
With enlisted men, the case is more difficult. In general, the soldier
makes his credit purchases by means of coupons. But if the Exchange
handles some such proposition as an ice delivery route, it is impossible
to do business with the patrons thereof by means of coupons of the
ordinary kind. The right method is to apply to the proper authorities for
permission to extend to married soldiers credit to such amounts as may
be recommended by their organization commanders. If this is not done,
and credit other than in the shape of coupons is allowed enlisted men or
if coupons or credit in excess of one-third of the man’s pay be allowed
him, the inspector will object to it, as either of these two proceedings
is held to be unauthorized. However, when there are no other stores in
the vicinity, it seems but reasonable to think that the Post Exchange,
instituted purely for the benefit of the enlisted man, should be allowed
to extend credit to such married soldiers of good reputation as may be
dependent upon it (and the Commissary) for the necessities of life. As
the married soldier is usually a non-commissioned officer of long and
honorable service (sometimes a first sergeant or non-commissioned staff
officer) with one or more children; as the bulk of his pay is usually
spent for articles ordinarily carried in stock by the Exchange; as the
Exchange is the result of beneficent legislation and the regulations
concerning same should therefore be interpreted in a liberal manner, it
follows that there is a great deal of justice behind a proper application
for permission to make charge sales to such selected men.
In case such permission is obtained, request should be made on the
various organization commanders to write a letter of the following
purport:—
FORT JAY, N. Y., Mar. 1, 1914.
From C. O., Co. H, 57th Inf.
To Post Exchange Officer.
Subject, Credit to Enlisted Men.
1. Request that the following named members of this
organization be given credit at the Post Exchange not to exceed
the amount set opposite their respective names:
1st Sergt. James E. Sullivan $ 20.00
Sergt. Ralph R. Strouse 16.00
...
(Sgd.) T. R. JONES,
Capt. 57th Inf.
Method of Making Charge Sales.
At the time each charge sale is made, the clerk notes the transaction on
a “Charge Sales Slip,” provided for the purpose, noting the date, name of
customer, name and number of articles sold, the total price of each item,
the total amount covered by the slip and the initials of the salesmen.
See Fig. 1.
[Illustration: Figure 1, (Reduced in size)]
It has become almost a rule that the purchaser shall receive a copy of
this record of sale. Sometimes, he does not receive it until after he
has paid his bill at the end of the month, a procedure followed in many
clubs and similar organizations. It is probably better in Post Exchange
work to furnish the purchaser with a copy of the charge sales slip at the
time the purchase is made, as most of our customers wish to keep track
of their accounts and also, as will be shown later, this method may be
made to promote honesty in salesmen who might be tempted to be otherwise.
As it is, of course, essential that we retain at least one copy of this
sales slip, it follows that the use of some sort of manifolding device
is necessary. There are many such devices on the market, among which
may be mentioned as representative, the manifolding sales book and the
autographic register. The former is shown in Fig. 2 and the latter in
Fig. 3, from which their methods of operation are apparent.
[Illustration: Figure 2.]
It is patent that some such scheme should be adopted for use in every
Exchange, no matter how small that Exchange may be. The advantages of
any of these systems (even a simple duplicating pad) over the painful
and inefficient method of recording all such sales in an old fashioned
sales record book must be evident to every one. The particular system
adopted is of minor importance so long as it is thoroughly adapted to
the circumstances of the case involved. The following table is arranged
for the purpose of permitting a comparison of two systems; one involving
the use of manifolding sales books and the other using an autographic
register.
[Illustration: Figure 3.]
SALES BOOKS vs
CASH REGISTER
1. Can be carried by the salesman, thus saving steps for him.
1. If a cash register is used the salesman must go to it to
record every sale, and therefore if the Manifolder is located
at the cash register no unnecessary steps are taken.
2. Cost of 100 duplicating books of simple design with total capacity of
5000 sales is $6.50. Triplicating books more expensive. No first cost for
machinery.
2. Rolls of paper are used; cost of rolls for duplicate records
of 5000 sales is from $4.50 up, depending upon the amount of
special printing on the rolls. Each machine like Fig. 3 costs,
retail, about $15.00.
3. Practically no counter space is necessary for using a sales book.
3. A convenient place must be left on the counter for use in
recording sales.
4. Uniformity in size of slips results in facility in handling and filing.
4. By exercise of reasonable care the size of the slips
approaches uniformity closely enough.
5. The various copies of a slip made from a sales book are more apt to
be “in register”—that is, the various lines and spaces of a lower sheet
are more apt to be exactly under the corresponding ones of the upper or
original sheet.
5. Sometimes trouble and the expenditure of a sales slip
results from the various rolls getting “out of step”. This
accident, however, is easy to remedy.
6. The slips can be tampered with, by dishonest salesmen, unless a
“slip-printing” cash register, or some special device is used.
6. By using a machine in which the triplicate roll is wound up
inside the machine as it is used, no tampering with the sales
records is practicable.
(If triplicate records are desired)
7. We may use either two sheets of carbon paper[1] or only one
double-faced carbon sheet below a tissue duplicate and over an opaque
triplicate.
7. We ordinarily use at least two sheets of carbon paper, and
all copies are opaque. The machine is adjustable, and will
either duplicate or triplicate according to the number of rolls
used. It can also be used with a transparent roll.
8. If two carbon sheets are used, both must ordinarily be shifted for
recording each successive sale.
8. The carbon sheets once fixed in the machine require no
further attention except when they are worn out or the rolls
renewed.
8a. By using a transparent duplicate and a double faced sheet of carbon
paper, the latter is the only sheet that requires handling.
8a. But the slips do not protect us so well because the
sales are not recorded on the back of each slip (by reversed
impressions) as well as on the front.
8b. In this case, by leaving the transparent slips in the book we can
easily check the consecutive numbers of the slips and see that all are
accounted for.
8b. By not tearing off the lowermost sales slip, but leaving
it attached to the roll until the end of the day, we obtain a
single strip of sales slips recording all the charge sales of
the day. They need not be checked for consecutive numbering
unless there is a break in the strip.
8c. By previously clipping off the corner of these tissue sheets the book
becomes self-indexing and in opening the book we turn automatically to
the place for recording the next sale.
8c. In tearing off the record of each sale we automatically
prepare the machine to record the next sale.
[1] Carbon paper is either single or double faced. By using the latter
between two sales slips it is evident that we record our sale on the
first and second slips and also secure a reversed copy on the back of the
original. It is said that salesmen who alter such slips for their own
gain are prone to forget or overlook this point and are caught thereby.
No alteration on a sales slip should be tolerated; if the clerk makes a
mistake he should be required to cancel and preserve all copies of the
erroneous slip and to make out a new one correctly.
It is seen that the advantages and disadvantages of these two systems
nearly counterbalance and that the particular system adopted must depend
greatly upon the opinions of those in charge of the Exchange. In the
following description, the use of triplicating records will be assumed.
In order to facilitate the assorting of the slips handed in by the
various “Departments” of the Exchange, it is a good idea to assign
distinctive colors to the original charge sales slips of each. (Of
course, if there is a very large number of departments, this idea would
have to be applied with discretion, as it is hard to recognize certain
colors at night by artificial light.) For example, let the original
sales slips used in the store be white; those in the market, buff; those
in the shoe shop, pink, etc. The duplicate slips should have their own
distinctive color and this color should be the same for all departments.
If a triplicate slip is used, it should be of still another color and the
same for all departments. Following out this scheme, the utility of which
will appear presently, a color scheme might be as follows:—
DEPARTMENT COLORS ASSIGNED TO CHARGE SALES SLIPS
_Original_ _Duplicate_ _Triplicate_
Store White “Newspaper” Yellow
Market Buff ” ”
Lunch Salmon ” ”
Tailor Green ” ”
Barber Blue ” ”
Shoe shop Pink ” ”
If a system of distinctive colors similar to the above is not adopted,
one of two things will be necessary in order that we may identify the
slips of each department, unless we wish to do so by wasting the time
in deciphering the articles on each slip and decide therefrom the
name of the responsible department; we must either have the names of
the departments printed on their respective slips when they are made,
or these names must be marked on the slips when the sales are made.
Neither of these methods is as efficient as that involving the use of
various colors, which tells automatically to what department that slip
belongs. By using distinctive colors, the printer would set up only one
form for printing our whole assortment, and our printing bill would be
correspondingly reduced.
In this connection, it might be stated for the benefit of the uninitiated
that ordinarily the principal items in our bills for printing, especially
in the case of blank forms, will be found to consist of the cost of
“composition”, “make-up”, “lock-up”, and “make-ready”. These operations
are necessary if but one form is printed; they need cost us no more if
50,000 copies are printed. Paper is comparatively cheap, so it usually
costs us little more to print 5,000 copies than to print 1,000. So we can
see that in the case of blank forms the cost per unit varies inversely as
the quantity ordered at one time. Hence, if we need such forms as sales
slips, of which we may use hundreds per day, we should order, say, a
year’s supply at a time. Other forms or sheets that are used once a week
or once a month must be ordered in lots sufficient to last for a longer
time. As we take these up on our Stock Record, such purchases in large
quantities will not disturb the worth of the Exchange.
An appreciable amount in the cost of our printing can be saved by a
skillful arrangement of the matter on the form. An experienced man can
sometimes draft a form so that the charges for printing it will be half
what it would cost to print the same form arranged by a thoughtless or
inexperienced person. Tabular work costs money, and so also does “special
rulings”. Experience or consultation with a practical printer is the only
real guide in this matter.
If any form is used in large numbers, it will pay to have electrotypes
made, and “repeat orders” printed therefrom. Forms that are seldom used
should not be electrotyped, as they will probably require some alteration
by the time a new supply is needed. An electrotype costs about $0.25 for
the first square inch and about $0.04 for each additional square inch.
Here is another opportunity for the exercise of judgment. Suppose we have
a large form with printed heading and footing, but nothing in the middle
of the sheet; it would be wasteful to electrotype the whole form, only
the heading and the footing should be so treated. Now, let us consider
the money wasted by having the name of our post printed on each bit of
stationery! It is easy to see that this is in some cases a positive
disadvantage. Suppose, for example, that Form 8, Fig. 1, fills the
requirements of Exchange methods. If a dozen Exchanges order a supply of
these forms and (as they usually do) thoughtlessly require that the names
of their respective posts be printed on same, they each pay a great deal
more than they would if they allowed the printer to make an electrotype
of this form and run off all the jobs from the same plate. It is hard, if
not impossible, to find any real reason why this extra matter should be
placed on many of our forms. Coöperation in matters of this kind would go
far toward cutting down some of our “overhead charges” in Post Exchange
work, and to secure such coöperation is one of the objects of this paper.
Still another way to minimize our printing bill is to adopt standard
sizes for our forms and to use, wherever possible, the same kind and
color of paper. Paper comes in sheets of certain sizes and if the printer
has to waste a part of each sheet in printing our forms, we shall have
to pay for it. Uniformity in size also leads to facility of filing.
Incidentally, money may be saved, in some cases by having two or more
forms printed together. For example, suppose we have three forms, A,
B and C, to be printed on the same stock, and we wish 5,000 A; 10,000
B; and 15,000 C. If ordered separately, these would entail 30,000
impressions. Suppose, however, that they are ordered at the same time,
and that the forms are of such sizes (not necessarily equal) that they
may be printed together on one sheet and cut apart afterwards. In such a
case, a saving might be made as follows:—Set up each form once, make, one
electrotype of Form B and two of Form C; place these with the originals
and there will result, in one “form” three Forms C, two Forms B, and one
Form A, and a “run” of 5,000 impressions will print the lot ordered.
There is a saving of the cost of running 5,000 Form B and 10,000 Form C
less the cost of electrotypes (if they are not on hand) and of the extra
work of locking up and making ready same. Of course, such a procedure
assumes that a considerable supply of forms, say, not less than a total
of 5,000, is ordered at one time. For a fewer number, there would be no
saving unless electrotypes were already on hand.
To return, now, to our sales slips. It will be noted that our triplicate
copies are the same for all departments. They are kept in rolls, if
manifolding machines are used, or if triplicating sales books are used,
the tissue paper sheets that are left in the books form our retained
record. In the cases of both the triplicate and the duplicate copies,
a cheap grade of paper is allowable on account of the little handling
these copies have to withstand. Also, there is no reason for their being
susceptible of rapid assorting according to departments. The duplicates
are also identical for all departments, they go to the customer at the
time of sale. In case there is a discussion about any particular slip,
the items thereon will show conclusively to what department it belongs,
as will also the initials of the salesman. On the other hand, it is
a positive advantage to have all duplicates of a distinctive color,
different from that of the originals. Suppose a customer buys a pair of
shoes from the store and later returns them. We should then give him a
slip crediting him with the shoes at the selling price. To do this, all
that is necessary is to fill out a regular charge sales slip in the usual
manner except that the word CREDIT is plainly marked on the slip. The
clerk then gives the customer the _original_ of this credit voucher and
files the newspaper _duplicate_ in the usual way. Upon sorting the slips
that night, the duplicate would be noticed, on account of its difference
from the other slips handed in and would thus prevent mistakes. Likewise,
if it became necessary for, say, the lunch room to buy a ham from the
market, the market attendant could make out his charge sales slip as
usual, giving the duplicate to the lunch room attendant with the ham.
That night, the appearance of this grayish duplicate among the salmon
originals handed in by the lunch room attendant would immediately call
attention to the transaction. It might be stated here, at the risk of
lapsing into the axiomatic, that such a transaction, although favored by
some exchanges, is not good business. It should be of rare occurrence and
even then needs special treatment. The proper procedure in such cases
would be to have the Market turn the ham back to the Stock Room, receive
credit for it and then let the Lunch Room draw the ham at the cost price.
This point is more fully discussed in connection with Stock Records.
After the attendant has recorded the charge sale in the proper manner and
given the duplicate slip to the purchaser, he still has to dispose of
another copy (or two other copies if triplicating records are used). The
original should be speared onto an ordinary file, each clerk having his
own filing hook in a convenient but inconspicuous place. The triplicate
is left in the sales book or on the roll, as the case may be. In
addition, the clerk should be required to ring up the sale on the cash
register. This is, of course, very important, and heroic measures should
be adopted to insure the recording of every sale, of whatever kind, on
the cash register. Means to this end can readily be devised. The subject
of cash registers is a very important one and is discussed in detail
elsewhere.
The above operations are described at some length, but in reality, they
are simple in the extreme: a customer makes a purchase, the clerk records
the sale, rings up the amount on the cash register, gives the customer
his goods and a copy of the sales slip and sticks the other copy on his
file. If the cash register prints tickets, he may drop the ticket in his
compartment of a box or drawer provided for the purpose, or preferably,
give it to the customer.
Daily Check of Charge Sales
After the day’s business is over, each clerk gathers up all his receipts
for the day and assorts them into three piles, representing the cash,
coupon and charge sales, respectively. He then makes out his sales report
on Form 5 as shown in Fig. 4. This report should be printed on the face
of an end-opening envelope measuring not more than 4¼ × 10 inches, thus
forming a convenient receptacle for the coupons, charge slips and cash
turned in. The printed form should be, say, 7½ × 3 inches. As these
envelopes are not subjected to rough usage, being used but once, any kind
of cheap paper will serve the purpose. It might be well in certain cases
to have the envelopes match the color of the original charge sales slips
for that department, but ordinarily, this would be found an unnecessary
refinement. After making out this sales report, the clerk places in the
envelope the cash, coupons, etc., and hands it to the Post Exchange
Officer or to the Steward, if so authorized. (For obvious reasons, the
Exchange Officer personally should receive and check the receipts the
night of pay-day and at intervals during the month, even if the Steward
is ordinarily authorized to do so.) The Steward or Cashier has meanwhile
unlocked the cash register, noted the readings of the record wheels and
taken out the tape showing the printed record of sales.
[Illustration: Figure 4. (Reduced in size)]
Now, assuming that triplicate records are used, the Steward takes the
triplicate copies—either book or roll—“throws” them or checks them for
numbering, to see that all are accounted for, and totals their value
on the adding machine. By comparing this total with that shown by the
appropriate wheels of the cash register, he ascertains if all charge
sales have been rung up. If these two agree, all is well, so far. If they
do not agree, a note is made of the discrepancy for use in connection
with the operations hereafter described.
[Illustration: Figure 5, (Reduced in size)]
By this time, the clerks should be ready to hand in their reports and
receipts. The Steward fills out the rest of Form 5 as called for by the
various columns and abstracts these reports to his Form 4 as shown in
Fig. 5. This form should be printed on a card measuring 3½ × 8⅜ inches,
to permit convenient filing. If printed on thin paper, it will have to be
filed on a Shannon file which is not so convenient in the long run. These
cards should be of fairly good stock, as they are a part of the permanent
records of the Exchange, but should be no heavier than necessary. The
Steward carries down the totals on Form 4 and compares them with the
three separate totals shown by the cash register. Restricting ourselves
to a discussion of the charge sales, we see that if the total of the
triplicate slips, the totals of the clerks’ reports and the total shown
by the cash register all agree then the charge sales statement shown
on Form 4 is correct. If there is any discrepancy in this or any other
column of Form 4 the mistake should be found and corrected before the
clerks are dismissed for the night. Suppose, for example, that the cash
register shows a total of $20.60 charge sales for the day and the total
on Form 4 is $21.90. The first step is to have the clerks make sure that
their reports correctly state the actual amount of charge sales slips
turned in. If they are correct, then some clerk has probably forgotten to
ring up one or more sales. To trace the fault, let the Steward read off
all the charge sales from the record tape of the cash register, calling
off at the same time the letter of the clerk who rang up each sale. These
can be compared with the triplicate copy of the sales slips, or the
assembled clerks can be required to note the sales accredited to them,
the grand total of which _must_ equal $20.60. In this manner, the error
is definitely located. On the other hand, suppose the cash register shows
$21.90 and the total on Form 4 shows $20.60. The effect is that produced
by a clerk being short $1.30 in charge sales slips after he has actually
made the sales. The same procedure as before will locate the mistake. If
he cannot produce the slips (or cash or coupons as the case may be) or
satisfactorily explain the mistake, the clerk in error should be required
to make good the discrepancy. Discrepancies in cash and coupons can be
located and remedied in the same manner. It is important that the clerks
be required to participate in the task of locating mistakes and to make
good on errors, otherwise there will be no incentive to careful work.
When the totals of the clerks’ reports check against the cash registers,
the next step is to check the former against the receipts in cash,
coupons and charge sales slips actually turned in by the respective
clerks. The cash should, in fact, be counted immediately upon being
turned in, checked O. K. on the clerks’ reports and put in a safe place.
The charge slips handed in by each clerk are compared with the strip from
the adding machine (on which the clerk has added up his slips before
making out his report) checked against the report and put aside for
filing. Coupons are handled in the same way except that they are sealed
in the envelope and put in a secure place until the Exchange Officer
personally can burn them. This matter of destroying coupons should
never be delegated to any other person. In view of the fact that the
receipts turned in by each clerk should, and usually do, check exactly
with his report, this particular routine is recommended, as it allows
the dismissal of the clerks before commencing the work described in this
paragraph. In case of mistakes, the simple expedient of making the clerk
at fault assist in the work for a few evenings, is usually sufficient to
prevent a repetition. In large Exchanges, where the coupon and charge
sales are large, it is not customary to total the charge sales slips and
count the coupons until the next morning. If the receipts turn out to
be greater than called for by the reports, the surplus can be taken up
by entering on a single line of Form 26 (described hereafter), whenever
the books are closed (or oftener, if desired) an item showing what
departments are credited with these excess coupons, exactly as if it were
another day’s transactions. Such entry should, however, be prefaced by
the words, “excess coupons”. Shortages should be collected from the clerk
at fault, thus making the reports correct. The Exchange Officer should
occasionally make the coupon and the charge sales counts himself.
It would be unbusinesslike, if the coupon or charge sales are heavy,
to require the Exchange Officer, the Steward or any other high priced
man to waste his time counting coupons or any other similar task.
A less expensive employee should be detailed for this purpose. For
such unskilled labor, a boy at $10.00 per month who can run errands,
etc., would be a profitable investment in many cases, thus leaving the
expensive employees free to do more important work.
Too much stress cannot be placed upon the importance of insuring the
correctness of the data entered on Form 4. If the above mentioned checks
have been applied, there should be no trouble in any phase of our charge
accounts.
Daily Summary of Charge Sales.
[Illustration: Figure 6. (Reduced in size)]
For various self-evident reasons, we use Form 7, shown in Fig. 6, for
showing a month’s charge sales. This form gives us in a most convenient
shape, a summary of that part of our (daily) Forms 4 that relates to our
charge sales business, it safeguards us against the loss of any Form 4
and facilitates posting our ledger accounts. This form is kept up to
date, the charge sales from Form 4 being entered thereon daily, and
therefore, affords us a most efficient aid in closing our books at any
moment. At the end of the month, or whenever the books are closed, we
find the totals of the columns of Form 7 and post these totals as lump
sums into the ledger. For example, the total of column 1 is posted as a
debit in the ledger against Bills Receivable, Customers; the total of
column 2 as a credit to the same account. The total of column 3 should be
posted as a debit against the Store account in the ledger, this being for
articles returned to the store by our customers; the total of column 4
is posted as a credit to the store account, being for articles sold from
same, etc. These sheets, constituting Form 7 are 11 × 14 inches, and cost
$1.75 per hundred without printed headings; a sectional post binder to
fit them can be bought for $3.75. The sheet is the same on both sides and
will, therefore, take care of seven departments if we use the whole width
of the open book. This will be found ample in most cases. It is useless
expense to have the headings, etc., printed on the sheets, because a
single sheet with neatly written headings can be made to serve as a sort
of index for a great many sheets, provided they are mounted above it and
are trimmed off just below the headings “DR.” “CR.”, and also trimmed on
the outside margin so that the date figures on the lowermost sheet will
serve as an index to the lines of the upper sheets. This labor and money
saving point will be more fully discussed later.
Recording Charge Sales Slips.
After these slips have been checked against the clerks’ reports, they
must be sorted out and filed according to the names of the purchasers.
For this work, have two card index drawers, each fitted with a set of
guide cards marked on the tabs with the names of our charge customers.
As each slip is found, file it behind the proper name. We first take all
the “Store” slips and file them in this manner; we then go through this
“sorting drawer” and total the slips belonging to each customer and enter
these totals in the column representing that date on Form 9, (see Fig.
7) opposite the names of the respective customers. At the same time, we
insert the sales slips diagonally in their proper places in the other
or permanent filing drawer. The total of these entries on Form 9 should
equal the total charge sales credited that date to the Store on Form 7.
If it does, the slips that have been placed diagonally can be shoved down
into the proper places as we are through with them; if it does not, they
can easily be removed for further examination. This daily check should
invariably be made for each department. We proceed in like manner with
respect to the other departments, each department having its own sheet
or sheets like Form 9. It is evident that this form gives us a summary
of all the charge sales made each day from each department, showing the
amounts sold to each of our customers. At the end of the month, each
line is added across and the total entered. The “Total” column is then
added up and compared with the total obtained by adding together the
figures (representing the daily totals) on the bottom line. If these
two totals check against each other and against the total shown on Form
7, the account may be considered correct and is a record of the daily
transactions between our customers and the department considered.
[Illustration: Figure 7. (Reduced in size)]
The book in which we bind our Form 9 is known as the “Charge Book”, and
it may be well to explain here the physical make-up of this important
book of record. It is, of course, on the loose-leaf principle, being
of the type known as a “sectional post binder”. It costs $2.50 and the
ruled sheets (without special printing) cost $1.00 per hundred. It is,
however, to the manner of handling the sheets of the book that attention
is especially invited. The old fashioned way would be to enter the names
of our customers down the left hand margin of each sheet until all were
entered, put the name of the department and the month and year at the
top of the sheet and the days of the month at the tops of the successive
columns with the heading “Total” at the right of the sheet. Thus, if we
had five departments and enough credit customers to require six sheets
for the list, we should have to prepare thirty sheets in this manner
every month. Now, to show how we can eliminate unnecessary work by the
exercise of a little forethought, let us assume that we have started our
record in this manner. Now take six copies of Form 9, trim them along
the heavy broken lines shown in Fig. 7, and bind one of these sheets in
front of each of those we have previously prepared. It is obvious that
the book is now ready for another month’s entries without any preparatory
writing or numbering whatever other than labelling each new sheet in some
convenient place with the month and department to which it pertains. Of
course, to care for the five departments, we should have to do this for
all five sets of sheets that we originally prepared. It follows that,
provided our list of customers does not change, this same operation of
inserting trimmed sheets would constitute the only labor necessary to
continue this record for an indefinite period.
After considerable experimenting and actual trial in service, the
following described scheme has been evolved for handling this record in
an efficient manner. While no claim is made that it is perfect, it is
believed that it will give thorough satisfaction wherever it is given a
fair trial and will save many hours of labor in keeping the books.
1. Take a sheet, Form 9, and enter the names of your charge customers
in alphabetical order, commencing on a left hand page. To allow for
future changes, leave a blank line before each name and one or two blank
lines at the bottom of the page for sub-totals, etc. For clearness
and permanence, these names should be put in from a black “record”
typewriter ribbon. Write in the headings of the various columns as shown
on Form 9. The object in placing the “total” column near the outside
margin is to have it next the customer’s name, thus minimizing the
chances of error in taking out the wrong total when we make our postings
at the end of the month.
2. If our list of charge customers will require more than one sheet,
take another Form 9 which we shall call Sheet No. 2 and proceed in a
like manner, using the same side of the sheet as before. This should be
repeated until all our charge customers are entered. Several blank lines
are left at the bottom of the last sheet. Thus, when we have finished
and have inserted the sheets in our book, we shall have a complete list
of our charge customers all recorded on the left hand pages of our book,
that side of each sheet that forms the right hand pages of our book being
blank.
3. Now, in order to utilize these blank pages, thus avoiding unnecessary
waste, we proceed as follows:—Open your book between _Sheets_ 1 and 2;
_page_ 1 will then be on the left and _page_ 2 on the right. This page
2 should now be prepared in a manner exactly similar to that used in
preparing page 1, except that the customers’ names are on the right hand
margin with the total column next inside. This is clearly shown in Fig. 7.
4. Prepare the blank sides of the other sheets in a similar manner and we
shall then have two complete lists of our charge customers, one occupying
the left and the other the right hand pages of our book, the confronting
pages being practically symmetrical.
5. Let us assume that the Exchange has five separate departments in which
charge sales can occur. We cut five sheets along the heavy broken lines
shown in Fig. 7 and insert them between pages 1 and 2. Five more trimmed
sheets are inserted between sheets (whole sheets) 2 and 3, and so on for
the rest of the book. In order to identify these sheets if accidentally
removed from the binder and to facilitate the making of entries, we
print on each of them in large letters, the name of the department and
the month to which they refer. This is best done lightly with red ink as
shown (in black) in Fig. 7 where the sheet is marked STORE—AUG. This red
ink lettering will not obscure the black ink figures subsequently made.
6. Let us agree to use the left hand pages for the first month’s account
and the right hand pages for the next month’s account. Let us take the
first trimmed sheet and mark it “STORE—JAN” on one side, and “STORE—FEB”
on the other. Do similarly for the sheets reserved for the “market”,
“lunch room”, and other accounts. The sheets containing the typewritten
headings are not used for recording sales, but are used for guide sheets,
for reasons to be set forth later.
It is easy to see from the preceding description that our charge book is
a running account, and being always up to date, can be closed at short
notice. When two months’ records have been entered, the trimmed sheets
are lifted and filed, as will be described hereafter. Fresh trimmed
sheets are again inserted in the proper places and the record proceeds as
before.
Consolidating Charge Sales Monthly.
The form in which we have placed our daily records of credit sales lends
itself very readily to a process of summation or consolidation. The
manner of doing this is as follows:—
1. Prepare a second double list of our credit customers exactly as
described above, except that the columns, instead of being headed with
the days of the month, are labelled with the names of the various
departments, as shown in Fig. 8. Let us call this Form 6. Blank sheets
trimmed along the heavy broken lines, shown in Fig. 7, are inserted as
before, no recording being done on the typewritten sheets—they are simply
guides or indices to the various lines and columns.
[Illustration: Figure 8. (Reduced in size)]
2. All these sheets are bound in a separate book to facilitate the work
of posting at the end of the month. Experiment seems to prove that this
is better than binding these records in the same book with the charge
sheets just described. This, for the reason that a clerk is apt to waste
too much time in continually turning pages back and forth and is also
more liable to make errors in posting.