Consolidating Stock Transactions.
The stock record is composed of two parts—one relating to cost prices and the other to selling prices. In all other respects, these two parts are identical and are handled in the same way. Each “selling” Form 17 is entered on a single line of the “selling” stock record, and each “cost” Form 17 is abstracted to a single line of the “cost” stock record. One page of the stock record (Form 27) is shown in Fig. 22. Only the left hand page is shown; the other departments are supposed to be on a right hand page, confronting the one shown in the cut. In cases of departments where credit transfers do not exist, the CR column can be omitted, with a resulting saving in space.
Checking Stock and Sales.
At the end of the month, or whenever our books are closed, we total each column on the adding machine and enter these totals on the next blank line, as shown, and then, when our inventory is taken, the value thereof at selling price is computed and entered just below these totals in the appropriate columns, and subtracted from them. The remainders, it is evident, should equal the total sales for the period considered. In order to compare these amounts, we now enter the total sales for each department in its proper column and find the difference between these figures and those immediately over them, and enter the discrepancies at the foot of the columns. These operations are shown in the figure. Theoretically, the amounts in the CR columns should just balance the discrepancies in the DR columns, but in actual practice, this state of affairs will rarely occur. The resulting net discrepancies, if small, are due, primarily, to wastage, failure to sell exact weights, etc. If these discrepancies are large, the cause thereof should be promptly investigated.
It is easily seen that this scheme permits us to make a check on any department at any time by simply taking an inventory of that department. All other data that we need for such a check are already available, and, as it would not take long to take an inventory of a single department, these checks should afford us a most efficient means of keeping track of our departments. It should be unnecessary to state that these check inventories should be taken without warning, and, preferably, by the Exchange officer himself.
If this system of handling stock is faithfully carried out, one of the greatest chances for “leakage” in the Post Exchange will be absolutely prohibited. It requires work, but no more so than any other efficient stock record, and the results are superior to those obtained from any other system known to the writer. If any exchange employee objects to the system on the ground that it entails too much work, it might be safely assumed that his real objection lies in the system’s efficiency.
Figure 22, (Reduced in size)