Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10)

by American School of Correspondence

EXPRESS SHIPMENTS

Many business houses are selling classes of goods which are most successfully shipped by express. This is especially true of those houses that transact the larger part of their business by mail. The question of shipping by express is, in itself, quite simple, but there are numerous details connected with the handling of such orders which require close attention. While these details vary in different businesses, as a typical illustration the business of selling books by mail has been selected.

When an order is received, the first step is to check the source—whether from circularizing, a re-order, or periodical advertising, and if the latter, the name of the publication. This information should be entered on the original order.

Cash and charge orders should then be separated, and on the charge orders the next step is to investigate the credit and check the address, especially when no advance payment is made. The address is checked against any list that may have been used, or against city directories, when such are available. If the list used has proved reliable, it usually is safe to pass the order from one whose name appears therein. Or the occupation given in the directory may warrant the acceptance of the risk. If he is a customer, his manner of paying in the past is the best guide.

Should all of these sources of information fail, and if the customer gives no references, it is well to secure a report from some commercial or collection agency. It may be necessary to follow up the agency, but if a reliable agency, like Martindale, is unable to obtain information, it is best to refuse the order except on a cash basis.

The order having been accepted, it should be entered in an order register, giving the name of the purchaser, the address in detail, description of the article ordered, source of the order, and the price. A sheet, as shown in Fig. 15, should be used for each day's sales. The sheets should be in duplicate, as a copy is needed by the statistical department, from which to tabulate the sales from different sources.

The next step is to open an account on a ledger card, as shown in Fig. 16. At the same time a collection card should be made. Both of these cards should be filled in from the original order—not from the register. If the number is large, the accounts should be numbered, the number being entered on both the ledger and collection cards. From the ledger cards, the numbers are entered on the register. Two indexes are made—one alphabetical and one geographical—on plain index cards, only the name and address, name of publication ordered, and the account number being shown. One of these cards is filed alphabetically and the other geographically, while the ledger cards are filed numerically.

Fig. 16. Ledger Card

Each day, before the cards are filed, the amount of the new accounts should be obtained on an adding machine, and checked against the total of the order register sheet. This will guard against errors in transcribing, for it is improbable that the same error will be made in entering the order on the register and on the card.

Fig. 17. Shipping Order and Label Made at One Writing

The statistical department will obtain a record of total sales from the duplicate register sheet, and, for this reason, the amount should be checked against the original sheet. Since these sheets are footed by different people, this comparison affords a reasonable proof of accuracy, and also insures the use of the same totals by the statistical and order departments.

The order is now properly recorded and is ready for shipping. But before a shipping order can be made, it must be routed. This is done by consulting a postal and express shipping guide, in which will be found the name of every postoffice in the country, the names of the express companies reaching that point, or, if not an express office, the name of the nearest office. The name of the express company is entered on the order, which is then turned over to the billing clerk.

Fig. 18. Prepaid Shipping Sheet

The making of a shipping order, Fig. 17, is the next step. At the head of, and attached to, the order is a label as shown in the illustration. This shows the name and address, and the name of the express company, which information is duplicated on the order blank by means of carbon paper. The body of the order gives full particulars of the articles to be shipped, names of the order clerk, checker, and entry clerk, together with the date. All orders should next be entered on the shipping sheets, which are supplied by the express companies. A prepaid sheet is shown in Fig. 18. This is made in duplicate, one copy, signed by a representative of the express company, remaining with the shipper. The copy for the express company serves as a voucher for the collection of the charges.

A MODERN FACTORY DINING ROOM.
One of the Developments of Modern Business. Studebaker Bros. Mfg. Co., South Bend, Ind.

The express shipping sheet and the orders, with labels attached, should be sent to the packing and shipping room, where the goods are packed and shipped. The order should then be returned to the office, and filed with the customer's orders in the correspondence files. This should be a formal acknowledgment, giving full information as to when and how shipped.

It will be seen from the above that orders of this class necessitate a number of details, each of which forms an important link in the complete chain.