BUSINESS PEACTICE AND ACCOUNTS FOR COOPEEATIVE STOEES. 29 



and it gives to the manager an opportunity to approve the petty 

 expense bills before they are entered.^ 



ORDERS AND REMITTANCES. 



Since no ledger accounts are kept with the creditors, it is important 

 to adopt a system of orders and remittances which insures a com- 

 plete record and enables the creditor to balance his account readily. 

 Every order for merchandise should be reduced to writing. Aside 

 from its value to the office it is practically impossible for the auditor 

 to verify the amount due creditors without this record. Salesmen 

 should be required to use the regular form, and if orders are placed 

 oraUy or by wire in every case they should be confirmed in writing. 

 Form 25 will be found convenient. When the invoice is checked it 

 should lie entered in the Invoice Register {Form 26). The most 

 satisfactory voucher is a check with the remittance form attached 

 (Form 15) . These checks should be made in duplicate, the carbon copy 

 being retained as the original entry of the payment. Both the 

 original and the duplicate should be numbered consecutively, and 

 the latter should be filed with the invoice or voucher. Then the 

 vouchers should be placed in consecutive order on an arch file until 

 audited. Should it be desired to use the nonduplicating checks, 

 usually furnished by the bank, the remittance notice may be used 

 separately, but the duplicate should be handled in the same manner 

 as above indicated. 



So far as practicable, part payment of biUs should be avoided. 



Checking accounts and filing will be facilitated if the exact amount 



of bills and any reduction or adjustment is noted on the Remittance 



Blank (Form 16). 



Cash Payment Book. 



Like the Cash Receipts Book, the Payments Book is only a tabu- 

 lation of the vouchers, since no payment is made without a proper 

 voucher. The date, payee, number, total, and distribution are 

 entered, each payment requiring but one line. The form is shown 

 on pages 22-23. v 



explanation of column captions. 



1. Total. — Contains aU the net cash amounts paid. Corresponds 

 to the face of the checks issued. (11 and 12) 



2. Merchandise discount. — In this column are entered all amounts 

 deducted from the face of the bills in consideration of payments before 

 the biUs are due. (38) 



3. Coupons issued. — In this column is entered the amount of 

 coupons issued for produce. The total is posted at the end of the 



I For a further explanation of petty cash see Bulletin 178, U. S. Dept. of Agr., Cooperative Organization 

 Business Methods. 



