Internal Control over Sales ~ Auditing Articles

Internal Control over Sales

Following suggestions are given for a proper control over sales.
Sales should be done preferably on cash basis
Order received from customer should be in written. All the particles about goods such as name date and mode of transportation should be written in the order received book.
For the execution of order proper time limits should be fixed for each of the department of the organization or business.
Two or three copies of invoices should be made for each transaction. One must be sent to the buyer, second to the invoice clerk and third to the gate keeper.

Invoice should be checked by a responsible person. Who offers his signature on it?
An officer should check the goods before packing and should see that only those goods dispatched which have been ordered.
At the gate all the goods should be entered in the goods outward register by the gate keeper. Against each any entry number of invoices must be shown.
Each invoice should be numbered and quickly recovered in the sale book.
All the goods returned by the customers should be entered in the goods inward register and a credit note should be passed by a responsible officer of the business.
Amounts received by the customers must be immediately deposited into the bank and if the payment is to be made at some future then a letter of collection should be sent
Discounts should be given to those customers who made payments early.
Salesman should not be allowed to make entries in the sale receivable register. Cashier should not be allowed to pass the entries in the sale book. Only the accountant of the business should be allowed to pass entries in the books of accounts and in the sale book.
Proper provision should be made on and doubtful debts in the books of accounts.
Written records of all activities relating to sales should be maintained.
Sales offers should be made to the old customer from whom no order has been received in the near past.