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CONTENTS
The Sales Forecast—Gauging Sales
Possibilities 256
Forms Illustrating Preliminary Esti
mates and Sales Forecast 259
Variations in Procedure 261
The Selling Expense Forecast 261
Preparation of Estimates 261
The Production Forecast 263
Goods on Order and for Stock 263
The Plant and Equipment Forecast. .. 267
The Purchasing Forecast 268
Form for Perpetual Inventory of Raw
Materials 270
Form for Purchasing Forecast 270
The Direct Labor Forecast 270
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The Manufacturing Expense Forecast. 274
The Administrative Expense Forecast. 276
The Other Income Forecast 277
The Other Deductions Forecast 277
The Financial Forecast 277
Cash Receipts 277
Cash Disbursements 278
Form of Financial Forecast 279
Procedure on Completion of Tenta
tive Financial Forecast 270
Modification of the Forecasts During
the Period 279
The Estimated Balance Sheet and
Profit and Loss Statement 282
Operation of the Budget 285
SECTION 5—CONTROL OF CURRENT OPERATIONS
Control of Receipts and
Disbursements
Importance of Cash Statements 293
Cash Budget 294
Daily Cash Receipt Controls 295
Daily Cash Disbursement Control.. . . 295
Daily Bank Balance Control 295
Receivable Controls 295
Shipments Control 297
Daily Incoming Invoice Control 298
Departmental Pay Roll Summaries. . . 298
Condensed Daily Financial Report. . . 304
Supervision of Cash Receipts
and Disbursements
Classification of Receipts 307
Accounts Receivable 307
Discount Notes 307
Schedules of Overdue Accounts 307
C. O. D. Accounts 309
Sight Drafts 309
Notes and Acceptances Receivable . . . 309
Desirability of Discounting Notes
and Acceptances Receivable 310
Notes and Acceptances Payable 311
Cash Sales 311
Receipts of Royalties, Rents. Interest
and Dividends 312
Inter-Company Cash Transactions. . . 313
Cash in Transit 313
Cash Held in Branches and Foreign
Countries 314
Discount Income from Accounts Pay
able 314
Discounts on Receivables 316
Verification of Discounts 316
Collecting and Reporting of
Cash Receipts
Organization 317
Customers’ Statements and Ledgers. . 317
Work of a Collections Unit 319
Incoming Mail Receipts 326
Office Cashiers—Large Concerns 327
Office Cashiers—Smaller Concerns. .. . 330
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Cash Sales 331
Procedure in Handling Notes and Ac
ceptances Receivable 333
Procedure in Handling Sight Drafts
and Time Drafts Receivable 333
The Cashier’s Duties 334
Internal Check on Cashiers 335
Handling of Security Deposits 335
Bank Accounts 337
Daily Reports to Treasurer 339
Handling of the Imprest Fund 340
Petty Cash Vouchers 344
Reimbursements for Expenditures from
Imprest Fund 344
Overages and Shortages 346
Branch Office Petty Cash 347
Petty Cash for Unclaimed Wages and
Labor Pay Offs 347
Tool Deductions Before Final Pay Off 348
General 348
Accounts Payable
Control of Purchases and Delivery of
Materials 349
Form of Purchase Orders 349
Receiving Reports and Packing Slips. 350
Audit of Suppliers’ Invoices 352
Purchase Invoice Record 358
Voucher or Charge Register 358
Accounts Payable Ledger 359
Accounts Payable Machine Methods.. 360
Accounts Payable Invoice Register . . . 363
Invoice Register Recapitulation 363
Creditors’ Settlement and Reconcilia
tion 366
Handling of Freight, Express and
Parcel Post Expenditures
Incoming Freight Expense Bills 368
Inbound Express Charges 369
Inbound Parcel Post 369
Outbound Freight 369
Outbound Express 370
Outbound Parcel Post 370