1. Sales order documents are not prenumbered, and kept in a busy sales clerk area.
2. Customer order is attached if one was received.
3. Sales invoice are pernumbered, and kept in a locked closet; removed only for billing clerk use
4. Bills of lading are pernumbered and kept in the shipping department.
5. Sales order forms are not prenumbered and kept in the salesclerks working area, many people pass through.
6. Credit manager is separate from the sales department
7. Credit manager signs the sales order if approved for credit
8. If credit is not approved payment is demanded in advance.
9. Sales order is held until payment is received be cashier.
10. Sales order is stamped by cashier is paid.
11. Cash sales are treated as credit sales and charged to accounts receivable, with customer payment immediately applied.
12. Sales orders sent to controller’s office.
13. Billing clerks produce a prenumbered four copy sales invoice, and add customer and product information, date, product unit prices from approved list, sales taxes, delivery charges, and total the order.
14. Customer and sales order are sent to accounts receivable accounting department.
15. Accounts receivable accounting department is in the controllers office.
16. Documents held in a “pending shipment” file to wait for the copy 4.
17. Copy 4 to inventory stores department as authority for the storeskeeper to assemble the order and move it to the shipping department.
18. Copy 3 is sent to the shipping department where it is held in a “pending release” file.
19. Shipping employees check copy 3 and copy 4 for errors.
20. Copy 3 is sent to inventory records department in the controllers office. 21. Copy 3 is source document to reduce perpetual inventory records.
22. Handlers alter invoices to show correct quantities shipped.
23. Customer’s who pick up their products sign copy 4 to show...