METHODS OF FILING

A suggested method is as follows:

1. Sort invoices by month
2. Then sort invoices by supplier
3. File each supplier invoice by date or their invoice number for each month

Some people prefer to give each supplier invoice their own reference number. They start at 1 and for each additional invoice the go to the next number 2, 3, 4 etc. They then file the invoices in this number sequence.

My preferred method is to have supplier invoices grouped together, as when a query arises you can easily find all that supplier’s invoices together in sequence without having to go anywhere else, as all the information is in the lever arch file sorted by month and sorted by supplier.

Use the method that suits your company the best.


Methods of filing - By Supplier, then by Date or Invoice number

Filing alphabetically by supplier and then by invoice date or invoice number

Advantages

1. Everything is sorted for easy access to any supplier transactions, as they are grouped together
2. They are sorted by month which makes it quicker to find invoices when you know the date

Disadvantages
1. If an invoice is removed from the file it is harder to notice it is missing, as there is no sequence of numbers broken.


HOW TO FILE AND STORE THE PURCHASE INVOICES

Use A4 Lever Arch Files
A4 is the most common paper size and can be placed in archive storage boxes for easy storage and retrieval.
Write on the spine label of the file your company name
This ensures wherever the file ends up, who these files belong to is never in dispute. Also if you have two or more companies, you know which company the file relates to.
Write on the spine label the contents of the file
This ensures everybody knows what is to be placed in the file
Write on the spine label the financial year the invoices relate to
This ensures everyone knows what year the invoices relate to.
Write on the spine label the months or the start invoice number and end invoice number.
This allows everyone to know what invoices are contained in the file

EXAMPLE:

By your reference number                       By supplier by month

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(c) Nilsson Denver Ltd 2007