Part 1

Produced by Donald Cummings, Adrian Mastronardi, The Philatelic Digital Library Project at http://www.tpdlp.net and the Online Distributed Proofreading Team at http://www.pgdp.net (This file was produced from images generously made available by The Internet Archive/American Libraries.)

Transcriber’s Note: This book has two Figure 13s, but no Figure 29.

Post Exchange Methods

by CAPTAIN PAUL D. BUNKER UNITED STATES ARMY

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.

_General Agents_ THE EAGLE PRESS Service Printers Portland, Me.

Copyright 1915 The Eagle Press—Portland, Me.

All rights Reserved

PREFACE.

Our Post Exchanges are usually in charge of officers with little or no experience in book-keeping, their assistants are usually enlisted men and not professional clerks and accountants, and there is, at present, no codified or standard system prescribed for handling this business. Some parts of the Post Exchange Regulations have become antiquated through the developments of modern business methods such as the “Voucher Check System”.

In view of these facts it is felt that there is a real need of this book, and it is hoped that the methods herein set forth will prove to be a step toward a uniform system that will be adopted in all Exchanges, one that will reduce overhead charges, eliminate unnecessary labor and improve unsatisfactory profits.

The writer intended discussing several other important points, such as Journal Entries, Mail Order Business, Consignment, Adding Machines, Loose-leaf and Card Index Filing, etc., but circumstances over which he had no control prevent, at present, any addition to these pages.

It is desired to give credit to Captain Henry M. Dichmann 24th Infantry, who by his work in connection with the Post Exchange at Fort Slocum, N. Y., was the inspiration for this work, and to Mr. James Parker, Cashier of the same Exchange, for valuable assistance rendered.

PAUL D. BUNKER, Captain, Coast Artillery Corps.

Fort Hancock, N. J., June 7, 1915.

* * * * *

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Catalogs and Special Prices For Post Exchanges free for the asking.

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Address Military Department

* * * * *

* * * * *

H. KOHNSTAMM & CO.

(Established 1851)

MFRS. AND DEALERS IN

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FACTORIES: Brooklyn, N. Y. and Camden, N. J.

* * * * *

PRINTING

EXCHANGE AND ORGANIZATION SPECIALTIES

ANYTHING FROM A CARD TO A BOOK.

THE EAGLE PRESS PORTLAND, MAINE

E. W. Kilbourne, Proprietor (Formerly Sergt. U. S. A.)

* * * * *

COUPON BOOKS

TO BE EFFECTIVE, MUST BE

Absolutely Accurate

_The_

SOUTHERN COUPON CO.

Are exclusive manufacturers of every kind of COUPON BOOKS, and owing to their perfect checking system, are in position to guarantee absolute accuracy, perfect workmanship and highest quality.

Each Coupon is Numbered

To correspond with number on cover, hence even detached coupons can readily be identified to their respective book—a great advantage.

WRITE TO-DAY FOR SAMPLES AND PRICES TO THE SOUTHERN COUPON COMPANY Box 346 BIRMINGHAM, ALA.

* * * * *

LOWEST POSSIBLE PRICES TO POST EXCHANGES AND SHIP STORES

The Army and Navy Co-Operative Company is splendidly equipped to serve Post Exchanges and Ship stores WELL.

By WELL, we mean:

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Buying from the Army and Navy Co-Operative Company means more sales and larger profits. Write for our Prices on Such Articles as you may need.

ARMY AND NAVY CO-OPERATIVE COMPANY NEW YORK STORE AND GENERAL OFFICES 16 East 42nd Street, near 5th Ave., New York

Store 1123-5 So. Broad Street Philadelphia, Pa.

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TABLE OF CONTENTS.

PAGE

Post Exchange Methods 1

Desiderata.

Charge Sales 2

General—Method of Making—Daily Check Summary—Recording—Consolidating Credit Transactions—Settling Dead and Live Records.

Cash Sales 29

General—Cash Book.

Coupon Sales 33

General—Kinds of Coupons—Frauds—Regulations—Issuing—Pay Table Procedure—Coupon Sales.

Stock Records 50

General—Inventories—Merchandise Purchased—Transfers Between Departments—Consolidating Transactions—Checking Stock and Sales.

Purchase Records 60

General—Purchase Orders—Purchase Record—Payments—Voucher Check System—Cash Disbursements.

The Ledger 72

General—Make-up—Ledger Accounts—Posting the Ledger—Balancing.

Monthly Statements 81

General—General Balance Sheet—Surplus and Adjustments—Statement of Income and Profit and Loss.

Pay Rolls 87

Figuring Selling Prices 89

Laundries 92

General—Bills Receivable—Piece Work—Damage Report—Claims—Inventories—Pay Rolls—Miscellaneous Books.

Auditing 99

General Duties Auditor’s Statement.

Cash Registers 103

Conclusion 106

* * * * *

ECONOMICAL

Use roll printed stationery and carbon, eliminating assembling of loose printed blanks and carbons—all automatic—no wasted effort.

EFFICIENT

Whatever is written upon the original appears fac-simile on the duplicate and triplicate alike. A loading consists of about 500 sheets.

In use in U. S. Army Posts, Naval Stations and ships for ten years.

POSITIVE ALIGNMENT AND REGISTRATION

The SHOUPALIGNER our newest device has special features of automatic alignment and registration of the form with automatic measured throw and stop. Absolutely essential where duplicates and triplicates are printed, requiring exact registration and alignment with the original. Our Service Department serves you with the most economical and efficient systems for the results desired.

AUTOGRAPHIC REGISTER CO., HOBOKEN, N. J.

* * * * *

ALL BLANK FORMS SHOWN IN POST EXCHANGE METHODS CAN BE OBTAINED AT LOWEST PRICES, AND IN ANY QUANTITY

FROM

THE EAGLE PRESS, PORTLAND, ME.

PIONEER PRINTERS TO THE ARMY

* * * * *

ENGRAVING

STEEL DIE EMBOSSING

PLATE PRINTING

POST AND ORGANIZATION STATIONERY

_THE EAGLE PRESS_ _Portland, Me._

POST EXCHANGE METHODS.

The general methods of conducting a Post Exchange are laid down in official orders and considering the categorical nature of these orders it would seem that the systems in all Exchanges should be almost identical. Such, however, is far from the truth, as there are almost as many systems as there are Exchanges, and a person in charge of one Exchange might have to learn considerable new matter before he would be able to administer the affairs of another Exchange. This variety of systems also causes trouble to auditing officers, exchange councils and to inspectors when they have occasion to go over the books. Some of the systems are unsound in minor particulars, and most of them are poorly designed. All trouble of this nature could be avoided by devising a standard system and installing it in all Exchanges. The advantages of such a proceeding would be manifold and there would be no important disadvantages. In this essay an attempt has been made to evolve such a system, one applicable to any Exchange, representing the best points of many Exchanges and including at all possible points the labor saving results of modern methods. The system here described is not the embodiment of theory alone, but has been through the test of actual trial and has given thorough satisfaction.

In devising any such scheme we must presuppose certain desiderata:—

1. The Exchange Officer can spend but a small portion of his time in the Exchange, and yet he must have accurate knowledge of what the business is doing. It is therefore essential that our records shall show accurately and concisely all the data that are necessary to a full understanding of the condition and operations of the business.

2. It is not enough to have a system which will enable us to render a clear statement at the end of the month, we should be able to close our books at any time and get out our financial statement in the minimum time.

3. Our system should be such as to minimize the possibilities of peculation. It is often said that there is no system which cannot be beaten, but there are systems which cannot be defeated for any great length of time. Therefore, our system must reduce to a minimum the time during which graft or theft can work undisturbed.

4. The system must be so simple that it will not require exceptional ability at any point in order that its provisions may properly be carried out. This makes it easy to break in new clerks, and enables them to perform their duties in a more satisfactory manner.

5. The system must not be so cumbersome that it will delay the making of sales. This is highly important. Every reader of this will undoubtedly have vivid recollections of his experiences in department stores, “waiting for change.” It is better to lose a dollar than to disgust our customers and drive them elsewhere.

The above requirements cannot but cause our system to be somewhat more expensive than that used in a “one-man store”. In the latter instance, as a proprietor will not cheat himself, the third requirement has, in general, no effect. The other requirements, however, will still hold, and even gain in importance. How many merchants have we seen who _thought_ they knew all about their business, but who in reality knew very little. They did not even realize that slipshod methods curtail credit and beget losses of various sorts.

In describing this system we shall take up the various features in the order in which they will be found easiest to install. For instance, charge sales are discussed first because, regardless of the system of handling these sales that may be in use by any Exchange, it will be found that to change to the system here described, before changing any other part of the system, will cause no confusion in the other books. In other words, if your system be changed according to the order in which the different parts are discussed herein, you will find that you have gradually installed a system which may be entirely different, yet you have caused no confusion in your books by the transition.

CHARGE SALES.

General.

This item includes the sale of merchandise to (1) officers, (2) civilians, (3) enlisted men authorized to buy on credit. Such sales are practically cash, being paid, usually, within a very short time.

The practice of extending credit to civilians is not encouraged by the authorities and the Exchange Officer should secure permission beforehand in case it is desired to transact this kind of business. In some cases of isolated posts it is to the best interest of the government that civilians employed or living on the post be allowed credit at the Exchange, as it might otherwise be impossible for the Government to retain their services or for the civilians to subsist themselves. It is to take care of such cases that this feature is mentioned. In opening a charge account with a civilian, care must be exercised to prevent a probability of loss to the Exchange, as one bad account might wipe out the profits from all such accounts for a considerable time. If a civilian is deserving of the privilege of purchasing at the Exchange he should have no objection to conferring with the Post Exchange Officer and making satisfactory arrangements with his employer.

With enlisted men, the case is more difficult. In general, the soldier makes his credit purchases by means of coupons. But if the Exchange handles some such proposition as an ice delivery route, it is impossible to do business with the patrons thereof by means of coupons of the ordinary kind. The right method is to apply to the proper authorities for permission to extend to married soldiers credit to such amounts as may be recommended by their organization commanders. If this is not done, and credit other than in the shape of coupons is allowed enlisted men or if coupons or credit in excess of one-third of the man’s pay be allowed him, the inspector will object to it, as either of these two proceedings is held to be unauthorized. However, when there are no other stores in the vicinity, it seems but reasonable to think that the Post Exchange, instituted purely for the benefit of the enlisted man, should be allowed to extend credit to such married soldiers of good reputation as may be dependent upon it (and the Commissary) for the necessities of life. As the married soldier is usually a non-commissioned officer of long and honorable service (sometimes a first sergeant or non-commissioned staff officer) with one or more children; as the bulk of his pay is usually spent for articles ordinarily carried in stock by the Exchange; as the Exchange is the result of beneficent legislation and the regulations concerning same should therefore be interpreted in a liberal manner, it follows that there is a great deal of justice behind a proper application for permission to make charge sales to such selected men.

In case such permission is obtained, request should be made on the various organization commanders to write a letter of the following purport:—

FORT JAY, N. Y., Mar. 1, 1914.

From C. O., Co. H, 57th Inf. To Post Exchange Officer. Subject, Credit to Enlisted Men.

1. Request that the following named members of this organization be given credit at the Post Exchange not to exceed the amount set opposite their respective names:

1st Sergt. James E. Sullivan $ 20.00 Sergt. Ralph R. Strouse 16.00

...

(Sgd.) T. R. JONES, Capt. 57th Inf.

Method of Making Charge Sales.

At the time each charge sale is made, the clerk notes the transaction on a “Charge Sales Slip,” provided for the purpose, noting the date, name of customer, name and number of articles sold, the total price of each item, the total amount covered by the slip and the initials of the salesmen. See Fig. 1.

It has become almost a rule that the purchaser shall receive a copy of this record of sale. Sometimes, he does not receive it until after he has paid his bill at the end of the month, a procedure followed in many clubs and similar organizations. It is probably better in Post Exchange work to furnish the purchaser with a copy of the charge sales slip at the time the purchase is made, as most of our customers wish to keep track of their accounts and also, as will be shown later, this method may be made to promote honesty in salesmen who might be tempted to be otherwise. As it is, of course, essential that we retain at least one copy of this sales slip, it follows that the use of some sort of manifolding device is necessary. There are many such devices on the market, among which may be mentioned as representative, the manifolding sales book and the autographic register. The former is shown in Fig. 2 and the latter in Fig. 3, from which their methods of operation are apparent.

It is patent that some such scheme should be adopted for use in every Exchange, no matter how small that Exchange may be. The advantages of any of these systems (even a simple duplicating pad) over the painful and inefficient method of recording all such sales in an old fashioned sales record book must be evident to every one. The particular system adopted is of minor importance so long as it is thoroughly adapted to the circumstances of the case involved. The following table is arranged for the purpose of permitting a comparison of two systems; one involving the use of manifolding sales books and the other using an autographic register.

SALES BOOKS vs

CASH REGISTER

1. Can be carried by the salesman, thus saving steps for him.

1. If a cash register is used the salesman must go to it to record every sale, and therefore if the Manifolder is located at the cash register no unnecessary steps are taken.

2. Cost of 100 duplicating books of simple design with total capacity of 5000 sales is $6.50. Triplicating books more expensive. No first cost for machinery.

2. Rolls of paper are used; cost of rolls for duplicate records of 5000 sales is from $4.50 up, depending upon the amount of special printing on the rolls. Each machine like Fig. 3 costs, retail, about $15.00.

3. Practically no counter space is necessary for using a sales book.

3. A convenient place must be left on the counter for use in recording sales.

4. Uniformity in size of slips results in facility in handling and filing.

4. By exercise of reasonable care the size of the slips approaches uniformity closely enough.

5. The various copies of a slip made from a sales book are more apt to be “in register”—that is, the various lines and spaces of a lower sheet are more apt to be exactly under the corresponding ones of the upper or original sheet.

5. Sometimes trouble and the expenditure of a sales slip results from the various rolls getting “out of step”. This accident, however, is easy to remedy.

6. The slips can be tampered with, by dishonest salesmen, unless a “slip-printing” cash register, or some special device is used.

6. By using a machine in which the triplicate roll is wound up inside the machine as it is used, no tampering with the sales records is practicable.

(If triplicate records are desired)

7. We may use either two sheets of carbon paper[1] or only one double-faced carbon sheet below a tissue duplicate and over an opaque triplicate.

7. We ordinarily use at least two sheets of carbon paper, and all copies are opaque. The machine is adjustable, and will either duplicate or triplicate according to the number of rolls used. It can also be used with a transparent roll.

8. If two carbon sheets are used, both must ordinarily be shifted for recording each successive sale.

8. The carbon sheets once fixed in the machine require no further attention except when they are worn out or the rolls renewed.

8a. By using a transparent duplicate and a double faced sheet of carbon paper, the latter is the only sheet that requires handling.

8a. But the slips do not protect us so well because the sales are not recorded on the back of each slip (by reversed impressions) as well as on the front.

8b. In this case, by leaving the transparent slips in the book we can easily check the consecutive numbers of the slips and see that all are accounted for.

8b. By not tearing off the lowermost sales slip, but leaving it attached to the roll until the end of the day, we obtain a single strip of sales slips recording all the charge sales of the day. They need not be checked for consecutive numbering unless there is a break in the strip.

8c. By previously clipping off the corner of these tissue sheets the book becomes self-indexing and in opening the book we turn automatically to the place for recording the next sale.

8c. In tearing off the record of each sale we automatically prepare the machine to record the next sale.

[1] Carbon paper is either single or double faced. By using the latter between two sales slips it is evident that we record our sale on the first and second slips and also secure a reversed copy on the back of the original. It is said that salesmen who alter such slips for their own gain are prone to forget or overlook this point and are caught thereby. No alteration on a sales slip should be tolerated; if the clerk makes a mistake he should be required to cancel and preserve all copies of the erroneous slip and to make out a new one correctly.

It is seen that the advantages and disadvantages of these two systems nearly counterbalance and that the particular system adopted must depend greatly upon the opinions of those in charge of the Exchange. In the following description, the use of triplicating records will be assumed.

In order to facilitate the assorting of the slips handed in by the various “Departments” of the Exchange, it is a good idea to assign distinctive colors to the original charge sales slips of each. (Of course, if there is a very large number of departments, this idea would have to be applied with discretion, as it is hard to recognize certain colors at night by artificial light.) For example, let the original sales slips used in the store be white; those in the market, buff; those in the shoe shop, pink, etc. The duplicate slips should have their own distinctive color and this color should be the same for all departments. If a triplicate slip is used, it should be of still another color and the same for all departments. Following out this scheme, the utility of which will appear presently, a color scheme might be as follows:—

DEPARTMENT COLORS ASSIGNED TO CHARGE SALES SLIPS

_Original_ _Duplicate_ _Triplicate_ Store White “Newspaper” Yellow Market Buff ” ” Lunch Salmon ” ” Tailor Green ” ” Barber Blue ” ” Shoe shop Pink ” ”