Welcome to today’s class!!
We are thrilled to have you in our class!!
In today’s Store Management class, we will be focusing on Revision
As students, if there is a moment that you can look forward to to refresh your memory before writing your exams, is the Revision period. And because Revision is a very important step in fostering adequate preparations for examinations, it is important to enjoy it.
Let’s take a look at some of the topics we’ve covered so far.
Documentation – Filing
Filing is a fundamental element of records management, but one thing that is often the problem is that people tend to overlook it.
As students who will later have companies of yours or work in organizations, filing is very important. And one interesting thing to know is that a good filing system is not just about those wearing suits and ties but about our lifestyle too. If you can properly arrange files – such as your certificates, results and even assignments, you will be considered a very coordinated person.
Effective filing systems ensure the systematic preservation of relevant information as well as their efficient retrieval. Using simple folder naming and easy structuring of files can often lead to some distinct advantages. This applies to both physical documents as well as digital.
Let’s consider some benefits of filing
- Better Control
Document control and management in general are aided by effective filing systems. All the incoming and outgoing mail is checked and verified and passed to the recipient for immediate attention where required. This stands true for online storage of documentation also.
Staff at all levels can easily locate and use records properly without any undue delay when a good filing system has been implemented. This leads to many micro savings in time which collectively leads to increased efficiency in operations.
Put simply, an effective filing system protects documents from possible loss or damage. In physical terms this means folders for separation and adequate filing cabinet infrastructure. Digitally this means backed up storage that is adequate in size for the files in question.
- Quick Reference
Simplistic and strategic filing arrangements assist the organization to refer to the relevant documents much faster. Clients and customers don’t relish long waits while you wade through complex folder structures to find the required information.
The business policy can be framed and planning of the project can be done by referring past records by the management, Hence, the documents provide a basis for future planning.
In summary, a good filing system has a positive impact on staff at all levels. but in particular, office and administration staff. Frustration from finding information can be avoided by simple and commonly understood filing structures.
Indexing is the process of organizing data according to a specific plan or framework. The indexing of data can have a variety of different uses in finance and economics, and it typically involves using a common point of reference or benchmark for the purposes of comparison.
An index establishes parameters for the data, as well as a time frame for the comparison. Over time, it allows businesspeople and economists to observe a variety of different trends and better understand the relevance of the data. Indexes can also calculate the relative value of an economic concept, such as a nation’s currency.
Some indexes allow for the comparison of data, even if the magnitude of that data varies greatly.
For example, if you want to compare data between a city with eight million people and a city with one million people, an index can help you account for the differences in scale between the two cities. By creating an index, you can determine which city is experiencing the most growth over time.
Indexing also helps track economic trends, allowing for more informed decision-making. The Consumer Price Index (CPI) is an example of an index that tracks the relative value of money.
The relative value of a certain dollar amount is likely to change over time due to inflation, as witnessed in Nigeria.
As the cost of goods rises, what you can purchase with that dollar amount is likely to decrease. The CPI can inform economists whether inflation is rising and allow them to assess the latest consumer trends more easily.
The CPI can also help economists measure the relative increase or decrease in real wages or the amount a person earns after adjusting for inflation. This type of index can also make it easier to track employee raises to determine the ideal size of a raise.
Some companies use the CPI to ensure that the relative value of their employees’ salaries remains constant.
Have you heard of the Labour Union? These people advocate for how well workers in the country should be treated. So, when unions negotiate contracts, they also use the CPI to request an annual cost-of-living wage adjustment as part of their contract.
In summary, each index allows investors to evaluate the current performances of some of the largest companies and compare them to their past performances. Investors are able to evaluate past trends because the statistical measures for each index remain constant.
A purchase order is a commercial source document that is issued by a business’ purchasing department when placing an order with its vendors or suppliers.
In simple terms, a purchase order is that document that a business purchasing department – a department responsible for buying materials and equipment – gives out when there is a need to buy anything.
The document indicates the details on the items that are to be purchased, such as the types of goods, quantity, and price. In simple terms, it is the contract drafted by the buyer when purchasing goods from the seller.
Let’s consider the benefits of Purchase Orders
- Avoids Duplicate Orders
Purchase orders bring several benefits to a company. The most important is that it helps avoid duplicate orders. When a company decides to scale the business, POs can help keep track of what has been ordered and from whom.
Also, when a buyer orders similar products, matching the invoices can be difficult. The PO serves as a check for the invoices that need to be paid.
- Keeps Track Of Incoming Orders
In addition, Purchase Orders also called PO help keep track of incoming orders, and a well-organized purchase order system can help simplify the inventory and shipping process.
- Serves As Legal Documents
Purchase orders serve as legal documents and help avoid any future disputes regarding the transaction.
In summary, while the purchase order shows what goods were ordered from the supplier, the sales order is generated by the supplier and sent to the buyer. It signifies the confirmation or approval of the sale. Nowadays, the Purchase Order process is no longer paper-based, and the buyer usually sends its suppliers an electronic Purchase Order.
- What is filing?
- Give three benefits of having a good filing system.
How is Indexing different from Chronological Filing?
- What is a Purchase Order?
- Define a Balance Sheet and give five importance to a Balance Sheet.
- What is another name for a Balance Sheet?
We hope you enjoyed today’s class. In our next class, we will be talking about Calculation of Rate on Turnover.
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