Office Procedures – JSS3 Business Studies Lesson Note (First Term)

Office procedure is the sequence of steps or operations in which activities are performed in an office.

Behavioural objectives

By the end of the lesson, students should be able to:

1. define office procedure;
2. explain what an office manual is;
3. state the importance of office procedure;
4. give examples of common office procedures;
5. list the steps for preparing an invoice.

What is an office manual?

An office manual is a book that records, in summarised form, all the activities done in an organisation.

• Other name: it is also called a procedure manual.
• Who produces it: every organisation produces its own manual.
• What it contains: the steps for each task, who does it and in what order.
• Who uses it: new and old staff use it to check how a task should be done.

Why is office procedure important?

Office procedure is important because it makes office work orderly, faster and cheaper to run.

• Lower cost: it reduces the general cost of operation.
• Easy training: it allows for easy training of new staff.
• Better performance: it enhances the performance of old staff.
• Better flow of work: it helps work move smoothly between offices and departments.
• Better coordination: it helps staff and departments work together.

What are examples of office procedures?

Office procedures cover any regular task that follows set steps.

• Handling incoming mail: receiving, sorting, opening, date-stamping, recording and passing letters to the right person.
• Handling outgoing mail: drafting, typing, signing, copying, recording and posting letters.
• Filing: arranging documents in order so they can be found quickly.
• Receiving visitors: welcoming, recording and directing visitors to the right officer.
• Preparing an invoice: writing down the goods or services supplied and the amount to be paid.

Steps for handling incoming mail

1. Receive the mail.
2. Sort it into letters, parcels and other items.
3. Open it and take out the contents.
4. Stamp the date of receipt on each letter.
5. Record it in the mail register.
6. Pass it to the person or department concerned.

What is an invoice?

An invoice is a document sent by a seller to a buyer that lists the goods or services supplied and the amount to be paid.

• Seller: the business that supplied the goods or services.
• Buyer: the customer who must pay.
• Purpose: it is a request for payment and a record of the sale.

How do you prepare an invoice?

An invoice is prepared in eight steps, from the company’s contact details to the accepted methods of payment.

1. Write your contact information: write or type the company’s details on a sheet of paper, spreadsheet or other electronic record-keeping system. Include an email address and phone number for customer questions.
2. Create a unique invoice number: use letters, numbers or both.
   • A simple number is “Job-001”.
   • A fuller number is “Smith-Job-001”. It suits repeat customers because it carries their last name and a job number.
   • Future invoices should have unique, sequential job numbers. This makes sorting a client’s job history easier.
3. Date the invoice: the sooner you invoice clients, the sooner you can get paid.
4. Describe the work performed: use separate lines to itemise each service or product.
   • Give the type and quantity of materials used.
   • For services, give clear details of the scope of work and the hours spent on each part.
5. Find the subtotal: add up the total quantities of each material, product and service supplied.
6. Work out the final job cost: add the sales tax to the subtotal and write the result at the bottom of the invoice. Use legible, boldface type so customers know exactly how much to pay.
7. State the payment terms: say when you want to be paid (see the table below).
8. State the payment methods: tell customers which methods you accept, such as cash on delivery (COD), cash, cheque or credit card.

What are common payment terms?

What does a simple invoice look like?

• Invoice number: Job-001.
• Payment terms: NET 30.
• Final cost: add the sales tax to the subtotal to get the amount to pay.

Evaluation

1. What is an office manual?
2. State three reasons why office procedure is important.
3. Give two examples of an invoice number.
4. What does “NET 30” mean on an invoice?
5. List the steps for handling incoming mail.

Assignment

Define office procedure, then outline the eight steps for preparing an invoice.