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.
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.