Steps in Invoicing

Sales and Accounting Departments

© Jerry Belch

WorkFlow/Overview of Project
  1. Step 1: Prepare a four week timeline starting two weeks before Bakersfield trade fair, around middle of November week .
  2. Step 2: Sales Department decides on the format for the invoice. Need a two copy system
  3. Step 3: Accounting Department decides on software to track invoices
  4. Step 4: Accounting needs to inservice sales staff on needed information from the invoice
  5. Step 5: Accounting and Sales should come up with a procedure needed for trade fair invoicing
  6. Step 6: Accounting should decide how to list or input invoices into accounting system: A/R and General ledger journal entries
  7. Step 7: A Procedure for collecting amounts due from Trade fair invoices should be devised
  8. Step 8: Accounting should decide a procedure for processing charge sales
  9. Step 9: Accounting should decide on a procedure for processing visitor checks.
  10. Step 10: Sales Department should plan an informal open house prior to trade fair to smooth out presentations and invoicing details.
  11. Step 11: Accounting Department Banker should handle all money involved in the sale of company products.

Tutorial
The primary purpose of invoicing is to keep track of your sales,determine who made the sale, see which items were sold and who to collect the money from.

It also provides the customer with a receipt for the goods or services they purchased. In all trade fair sales a copy of the invoice is required to be given to the customer. If an invoice is not given to the judge they will deduct 20 points from the Salesmanship score sheet.

Both Sales and Accounting, as their first step in organizing the invoicing process, is to go over the accounting training tutorial Chapter 5. Pay special attention to the sample invoice, the invoice spreadsheet and the tutorial section on accounts receivable.

Materials to collect

  1. Different invoice forms, journals .Office supply stores carry these materials. A charge sales spreadsheet for recording invoices and cash sales spreadsheet.for keeping track of cash sales.

    A Microsoft template sample invoice from Word. This invoice when modified for your company could be used for on-line sales. Remember in California you are now required to charge sales tax on merchandise purchased. This rate varies by county. The State Board of Equilization web site has all of the amounts.

  2. Some of the project needs to be done : Week 1 and week 2, before
    Thanksgiving.

    The last two weeks are devoted to the accounting for these invoices and collecting the money due your company after the trade fair

  3. Printout product list for Wipeout Sports Apparel.Product List
  4. Printout Internet sales invoice Order 1
  5. Printout Internet sales invoice Order 2
  6. Printout Internet sales invoice Order 3
  7. Printout Internet Invoice Template Internet Invoice Template
  8. Sample sales
  9. Blank Invoice 1
  10. Blank Invoice 2
  11. Blank Invoice 3
  12. Voucher Check sample

  13. Trade Fair Assignment

  14. Printout the Rubric for judging Salesmanship.- VE Website

  15. Print out Cathy's Department Template From Janet's Web Site Helpful Forms-Forms, Templates and Letters

  16. Printout VE Progress Logs from Janet's Web Site Helpful Forms-Forms, Templates and Letters

  17. Cathy's Personal Checks for open house.
  18. You can modify this format for your VE customers.
  19. The Virtual Enterprise Center also has a supply of visitior checks used by judges and guests at the trade fair.

    Teacher's Responsibility

  20. Fill out the Department Template for each department. -What do you want them to accomplish this week.

  21. Make a copy of the Department Template for each department manager and give the Department Templates to the CEO.

  22. CEO gives out Department Template to each department head.

  23. Department head gives out Progress Logs to each employee and from the Department template and the curriculum assigns each employee the tasks for the week

    for the Progress Log.

  24. Completed Progress Logs for each employee are given to the department at end of week.

  25. Department heads turn progress logs over to CEO.

  26. CEO turns over progress logs to teacher.

  27. Set up a filing cabinet drawer for these materials, so you won't have to go through this process next year.

  28. Evaluate each week's assignment to see if it is completed. You may need to adjust the amount of time for each week's assignment.

  29. When project is completed, go over scenarios and rubric to make sure all items are there.

Step-By-Step Instructions

Invoicing Week 1: Learning Invoicing Procedures: Accounting and Sales Departments

Using the materials that you collected we are going to prepare department templates for this project. Two departments are affected: Sales and Accounting

  1. Timeline for the project is 4 weeks.
  2. Teacher gives printout of this week's department template and blank project logs, for each employee in Sales and Accounting, to the VP of Accounting and the VP of Sales. VPs should distribute the workload among department employees. Each employee fills in their own log with assignments given by their VP.
  3. Accounting and Sales should go over the    accounting training chapter 5 paying careful attention to the section on accounts receivable.
  4. All Accounting and Sales Department personnel should be familiar with all parts of an invoice.
  5. Have an ample supply of preprinted invoices with copy ready for open house and trade fair.
  6. Each invoice should be stamped with the company's name , school and address.
  7. These stamps can be made up for you at an office supply store.
  8. Sales Department should stamp each invoice and the copy with the stamp before open houses and trade fairs.
  9. All Sales and Accounting Department and all company personnel should know how to fill in all parts of the invoice in a legible manner.
  10. Sales Department needs to plan for an informal open house, where sales techniques can be perfected.
  11. Visitor checks or vouchers need to be provided to each potential customer at the beginning of the opening house. A value should be placed on teh vouchers or checks. One thousand dollars is a good choice.
  12. Sales Department members should be well versed in the sales catalog and product line.
  13. Sales department should have rehearsed sales pitches.
  14. All sales personnel should know the importance of selling not just one product, but a combination of products to the same customer.
  15. Open house and trade fair special promotion should be prepared for the upcoming trade fair.
  16. Items that are of interest to adults and judges should be available.
  17. Sales should suggest these items to adults attending the open house and for judges at the trade fairs.
  18. During the open house, accounting department should check over the invoices for completness and legibility

Assignments for Invoicing Week 1

  1. Blank invoice pad stamped with company information.
  2. Ample number of Voucher Checks for open house printed out.
  3. Sales pitch for open house and trade fair emphasizing selling of multiple items.
  4. Identify packages for adults and judges at open houses and trade fairs.
  5. Transfer information from each of the Form Mail Internet orders to the Internet invoice forms. Number invoices and do not forget sales tax.
  6. From list of sample sales, fill out an invoice for each one.
  7. Complete blank invoices for items on sample sales list.

Important: Print For Details -Week 1

Invoicing Week 2 : Open House and accounting for the invoices: Accounting and Sales Departments

  1. Teacher gives printout of this week's department template and blank project logs, for each employee in Accounting and Sales to the VP of Accounting and VP of Sales. VP should distribute the workload among department employees. Each employee fills in their own log with assignments given by the VP of HR.
  2. At the end of the open house, the accounts receivable clerk should enter the sales invoices into a  cash sales spreadsheet  or input into an Accounts Receivable program.
  3. A cash journal   entry needs to be prepared for entry into the general ledger. Debit Cash Credit Sales. You woll note that the VEC business contract amount has already been entered.
  4. The totals from the cash receipts journal should be entered into the general ledger program as a debit to cash and a credit to sales.
  5. The banker needs to make a bank deposit for the total of the checks collected.
  6. The banker can transfer this money from the $500,000 account set up in your Coordinator/Visitor account to your company account.

    Assignments for Invoicing Week 2

    1. Completed spreadsheet with all cash sales from Open Hours.
    2. Completed Cash Journal listing Cash Sales
    3. Enter date
    4. Enter your VE business contract amount in Sales Credit and Cash Debit columns.
    5. Posting from Cash Journal to General Ledger program. Debit Cash account and credit Sales.
    Important: Print For Details - Week 2           

    Invoicing Week 3 : The Bakersfield Trade Fair: Accounting and Sales Departments

    1. Teacher gives printout of this week's department template and blank project logs, for each employee in Accounting and Sales, to the VPs of VPs should distribute the workload among department employees. Each employee fills in their own log with assignments given by the VP.
    2. Make sure to take and ample supply of invoices to the trade fair booth with your company stamped on each one.
    3. Sales should go over the Salesmanship rubric for judging.
    4. One or two accounting students should be in charge of making up the invoices. Be sure to get name of student, high school and other contact information as well as what they bought. An incomplete invoice can be worthless and you will have lost sales.
    5. Attach visitor checks to your copy of the invoice.
    6. Sales Department should be ready for all customers approaching the booth. Greet each potential customer. Watch out for adults with clipboards. They are probably the judges.
    7. Rotate new people every hour to keep them fresh and enthusiastic.
    8. Make sure when you break down your booth, that you have all of your invoices and visitor checks.
    9. Some schools like to process the invoice on the spot electronically. Be very careful. The process of filling in and printing can be quite slow, limiting the amount of your sales.

    Assignments for Invoicing Week 3

    1. Complete trade fair assignment sheet
    2. Check all invoices for pertinent data before leaving the trade fair.
    Important: Print For Details - Week 3           

    Invoicing Week 4 : Accounting Department

    1. Teacher gives printout of this week's department template and blank project logs, for each employee in Sales and Accounting, to the VPs of Accounting and Sales. VPs should distribute the workload among department employees. Each employee fills in their own log with assignments given by the VP of HR.
    2. Accounting should sort out the cash sales - visitor checks and the invoices - charge sales.
    3. All Charge sales should be entered into a spreadsheet or accounts receivable program. This is your accounts receivable ledger.
    4. Some teachers bundle of all the invoices by school sold to and send them snail mail to the coordinator at the school.
    5. Another way of handling the charge sale invoices is to make a folder for each school. Save each of the invoices into the school folder. Give each file the name of the student. When each school folder is completed, E-mail the files to your own coordinator. Your coordinator can then forward the e-mail to the coordinator at each school.
    6. Find a system that works for you and gets you the money owed.
    7. Charge sales should also be entered into the Sales Journal debiting accounts receivable and crediting Sales.
    8. A An entry into the General Ledger should also be made from the Sales Journal. Debit Acounts Receivable and Credit Sales.
    9. All cash sales should be entered into a cash sales spreadsheet program to determine totals for sales and cash.Make sure to include your business contract with the VEC.
    10. A cash receipts journal entry needs to be prepared for entry into the general ledger. Debit Cash Credit Sales.
    11. Post to the general ledger from the Cash Receipts Journal - Debiting Cash and Crediting Sales.
    12. The banker needs to make a bank deposit for the total of the visitor checks collected.
    13. The banker can transfer this money from the $500,000 account set up in your Coordinator/Visitor account to your company account.
    14. The banker needs to keep accounting department up on which A/R bills are being paid to your company electronically and their invoice numbers so they can be moved from A/R to cash on the Financials.
    15. The banker has to notify accounting any payments on invoices made to the company
    16. Accounting then needs to indicate on their spreadsheet (A/R Ledger) that the money was collected.
    17. Debit Cash and Credit Accounts receivable in the General Ledger.

    Assignments for Invoicing Week 4

    1. Completed cash sales spreadsheet with all cash sales from Trade Fair.
    2. Completed Cash Journal listing Cash Sales
    3. Enter date
    4. Enter your VE business contract amount in Sales Credit and Cash Debit columns.
    5. Posting from Cash Journal to General Ledger program. Debit Cash account and credit Sales.
    6. Completed spreadsheet listing all charge sales - Accounts receivable ledger.
    7. Posting from Sales Journal to General Ledger. Debit Accounts Receivable and Credit Sales
    Important: Print For Details - Week 4           

    Example of Accounting Trade Fair Handling of Charge and Cash Sales: Accounting Department

    1. You have probably not finished the chapters on journals and ledgers yet.
    2. It is all in the accounting tutorial in the later chapters. That is why I am going to do a walk through this process with fictious data so you have something to compare your work with.
    3. Make certain that you complete all assignments in the tutorial. A little bit of accounting training is not enough. Stick with it
    4. Trade fair packages were made up for adults and judges.
    5. The package for women totaled $175.70 and included board shorts for $27.95, Wedge sandals at $37.95, Ecko Hoody at $69.95 and a T-shirt for $39.95. The sale was for all female members of the adult's extended family.
    6. The package for men totaled $222.85 and included boardshorts at $39.95, T-shirt for $22.95, Teva Sandals at $90.00 and a hoody for $69.95. The sale was for all male members of the adult's extended family.
    7. The banker needs to make a bank deposit for the total of the visitor checks collected.
    8. The banker can transfer this money from the $500,000 account set up in your Coordinator/Visitor account to your company account.
    9. The banker needs to keep accounting department up on which A/R bills are being paid to your company electronically and their invoice numbers so they can be moved from A/R to cash on the Financials.
    10. The banker has to notify accounting any payments on invoices made to the company
    11. Cash Sales Spreadsheet
    12. Cash receipts Journal Key
    13. General Ledger posting of Cash to General Ledger program
    14. General Ledger posting of Sales to General Ledger program
    15. Charge Sales Spreadsheet
    16. Sales Journal
    17. Post Accounts receivable total from Sales Journal to General Ledger
    18. Post Sales amount to General Ledger from Sales Journal
    19. Recording Payments in the Accounts Receivable Ledger
    20. Recording invoice payments totals in the General Ledger




1. Virtual Enterprise California - Employee Manual Workflow

2. Virtual Enterprise California - Employee Manual Curriculum

Virtual Enterprise California
Janet's Web Site -Helpful forms-Forms and Templates