The slip system and batch posting- Part 2

azka — Sat, 26 Jun 2010 09:27:03 +0000

The sales accounting system indicated in the previous paragraph is relatively easy to inaugurate since the sales invoice originates in the firm and can be suitably designed for the purpose; also a routine can be introduced to facilitate its adoption. When the purchase journal is being considered, other factors must be borne in mind. For example, the invoice must be accepted, in most cases, in the manner in which it is sent by the supplier. Again, on receipt it must be checked for accuracy, pricing and against goods received. Since the number of suppliers is often less than the number of sales customers, consideration might be given to the method known as batch posting. Under this method when a purchase invoice is received it will be registered and put through the appropriate checking routine. When it is passed as correct for payment it will be placed in a special file under the supplier’s name. When the supplier’s statement of account is received at the end of the month it will be checked against the invoices and if correct the latter will be attached to the statement. Thus only one entry ( the total of the statement) us made for each supplier each month. When discussing the payment of suppliers invoices, it was mentioned that suppliers’ account need not be maintained in some circumstances, and such a system might be incorporated with the batch method.

The method described in this section is useful for small business, and also form the basis for mechanical accounting systems. It has important applications un the use of computers by providing basic accounting procedures. There must be a rigid check on the accuracy of the input to a computer system; if the wrong data is put into that system then the wrong answer will be produced- “garbage in, garbage out”. One of the controls of the input system is to have check total produced at the point transactions arise or original documents are prepared. The method illustrated and described in this section would provide some of these check totals.

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The slip system and batch posting- Part 2