Post Exchange Methods / 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.

by Paul D. Bunker

Inventories of Stock.

Figure 19, (Reduced in size)

Let us start by taking an inventory of the stock we have on hand in the stock room. We take a pack containing a known number of cards, preferably numbered in sequence, like those shown in Fig. 19, and enter on the top line the name of each article as we come to it; in the right upper corner, the unit in which we sell it, whether pounds, bottles or what not; and at the right of the uppermost data line, the number of such units that we actually find on hand. We do this for each article in succession, using a different card for each. If we have various grades of the same kind of article (cigars, for instance) selling at different prices, a separate card will, of course, be made out for each different grade. (Never sell the same article at two different prices. For example, do not sell cigars for “10 cents each, 3 for a quarter”. Sell them at either price and put in a different brand of equal quality at the other price. It is proper to give reduction on a sale of a box of cigars at a time, but sell them from the stock room in such a case, and not from the store. Another way, permitting sale from the department’s shelves, is by means of a discount slip, which will be touched upon later. The first method, however, probably suits our purposes best, especially when combined with the second.) The cards mentioned above should be left with the articles to which they refer until the inventory for that department is complete. We then look over the shelves to see that there is a card with every article, thereby proving that our inventory is complete, a point of superiority over the book form of inventory. We then gather up and count the cards to make sure that none are missing. The cards are then filed alphabetically behind a tabbed index card referring to that department, or that particular section, if the department is sub-divided. This same procedure is followed in taking inventory of merchandise in the store, lunch room, etc., except that a different colored card is used for each department. All sections of the same department use cards of the same color. As each department will have more or less merchandise in its store room, it will probably be best to take the store room inventories first, then take the articles in the sales rooms. Enter partial totals in pencil and the total in ink or indelible pencil on the first line under the heading, “On Hand”, the date being entered at the left. The number on hand, multiplied by the unit cost and selling prices, respectively, will give the total cost and the total selling price of all the articles on that card. For this purpose, the unit cost and selling prices are entered at the upper left hand corner of each card. The total cost prices are used in our inventories shown on our monthly statement, and the total selling prices are used in our stock records only. In large exchanges, these cards are not used again until the next inventory is taken, so it is seen that they will last for several months.

Merchandise Purchased.

When merchandise arrives, it is cared for as described under “Purchase Records” and when the total cost and selling values of the goods on any invoice have been figured and transportation charges, etc., distributed, the selling values are entered on Form 17, shown in Fig. 20. Two copies of this form are used every day, one for cost prices and one for selling prices. Each invoice requires but one line on each of these forms, so one form is ordinarily ample for a day’s stock transactions. In the left hand column is entered the number of the invoice and in the Dr. column pertaining to each department is entered the selling price of all articles which are covered by that particular invoice. The sum of all the values entered in the Dr. columns on any one line should therefore equal the selling price of all articles covered by the invoice whose number appears at the left.

This same procedure is followed with all invoices received, and therefore covers all merchandise transactions. It will be noted that there are no “Requisitions”, properly so-called, in cases like this where the incoming goods are sent direct to a department. The department head receipts for such goods by simply placing his name or initials in the right hand column of the retained copy of our original order. (See Purchase Records.) This simplified way of handling such a transaction saves an enormous amount of unnecessary work, and is just as sound as the Requisition System.

Transfers Between Departments.