Journal entry for the commercial books be based on the amounts so arrived at; or, if the transactions are few they can be recorded from the Transfer Notes into the Journal direct.

The book-keeping in relation to the sale of commodities may be said to be initiated by the receipt of an Sale of com- order, and as regards the factory, will hold modities. good whether received direct from a customer or through an agent. The questions of discount or commission which present themselves in the latter case are transactions which it is necessary to deal with in the commercial books only. The principal of the firm, if he accepts the order, will probably initial it by way of authorising its execution. Should the stock of the commodities ordered be exhausted, or should the articles require to be specially manufactured, an order to manufacture the given or a larger number of similar articles for stock, should, as already explained, be passed concurrently with the acceptance of the order.

Orders Re

The customer's order having been accepted may be registered in an Orders Received Book (Speceived Book. cimen No. 40). The order may then be passed on for execution to the warehouseman, who should have received a standing instruction to return all orders to the counting-house when completed. If it be thought unadvisable to pass the original order (which contain references to the terms of payment, commay mission, or discount, &c.) to the warehouseman, he may be provided with a copy or with extracts warehouse- from the Orders Received Book, or a special form of advice may be sent to him.

Advice to

man.

The advice may take the form shown in Specimen No. 41.

Stock Requisition and Advice to Warehouseman

SPECIMEN No. 41.

∙189- -No.

The form could also be made to serve the warehouseman as a Stock Requisition, and it would, in that case, Stock Issued be entered in the Stock Issued Book. In cases Book. in which the goods are ready for shipment, and further instructions have to be given concerning them, the form would be sent to the counting-house,

and if the dispatch of the goods be approved, the requisition could be returned to the warehouseman with the information inserted thereon. It is necessary to follow this routine if, as is sometimes the case, it is not possible for the customer to give complete instructions as to forwarding when placing the order, or if special arrangements as to payment before, or on, delivery have to be made.

STOCK ISSUED BOOK.-SPECIMEN No. 42.

Weight.

Date.

Sale
Order Article. No.
No.

Rate. Amount. Ledger

Fol.

Stock Requisitions.

Should the original order be sent to the warehouseman the stock may be drawn from the warehouse, according to the conditions of the business, either by posting the order direct to a Stock Issued Book (Specimen No. 42), or by means of a Requisition Form (Specimen No. 43).

The requisition would likewise require posting in the Stock Issued Book. But in this case that book would require, for purposes of reference, an additional column. for the No. of the Stock Requisition. The Stock Issued Book will of course in turn be posted to the credit side of the Stock Ledger.

Where there is a great variety in the articles sold, or multiplicity of transactions, it may be desirable that the

SALES ANALYSES.

85

Daily return counting-house should be kept regularly informed of the stock issued each day. This

of stock issued.

can be done either by alternate Stock Issued Books being kept, so that the previous day's record of stock issued may be always at the counting-house and the current day's record in the warehouse; or the warehouseman may send in every morning a Stock Sent Away Form, showing all stock that has been issued during the previous day, giving in each case the Order No., so that the clerk invoicing may immediately turn to the Orders Received Book and see the stipulations and conditions on which the order was accepted.

It is also desirable that the amount of the stock requisitions should, in the counting-house, be entered and Stock Issued analysed in a Stock Issued or Sales Analysis Book. This book (of which we do not give

or Sales Analysis Book.

a specimen ruling, as it pertains to the office) should be so ruled that the various items entered from the Stock Requisitions might be analysed under the various branches of the business. The aggregate of the totals of such branches would necessarily agree for any given period with the totals of the stock requisitions for the same period, and necessarily also with the totals of the warehouseman's Stock Issued Book.

The fourth class of transactions referred to at the outFourth class set of this chapter involve the procedure to

of transactions:

Stock back

to warehouse.

be adopted in the factory with regard to stock which is rejected or returned, after having been sent out for inspection or ap

proval, on loan, hire, or exhibition.

Stock Re

The warehouseman on receipt of such goods turned Debit will make out a Stock Returned Debit Note (Specimen No. 44).

Note.