Teacher Created Materials
July 30, 2015
Teacher Created Materials was still busy with all the changes because of some big orders from June and July. This week I continued to do things I do best: mailing invoices, keeping track of orders among TCM, and filing Sales Tax. Beside Sales Tax, I learned to file some states’ Business Tax, Labor and Industries (L&I) Tax and Commercial Activity Tax (CAT) – each type of tax is filed differently and based on different sources of information. For example, Washington’s L&I tax is based on a sales rep’s number of hours of work during the quarter; Ohio’s CAT filing is based on the same data I used for Sales tax, but just summarized in another way.
Besides the daily work I mentioned above, I also prepared a Royalty statement for some of TCM’s products. For your information, Royalty is the payment for the use of patents or copyright of a property – in TCM case, for the copy rights of books from writers. I learned to differentiate between some products code: since TCM sells books through kits and singles, repetition might occur. Thus, it’s important to make sure that the sale of a book included in a kit is not recorded twice, which would result in double royalties paid. After making sure the amount of products sold to be paid is right, the process is simple: first I will apply the agreed royalties rate to each types of products, then summarize the amount to be paid to each types/series of books or to each G/L account, and finally prepare the data to be read easily, which will be sent to the CFO for approval.
Also, I prepared some Commission statements as well. While Royalty is payment made to writers who write books for us, Commission is payment made to sales representative who sell books for us. And again, the process is also quite simple: take the total amount of sales from each sales rep, calculate commission rate, and have the result! And I always have to double check, since the commission rate will change according to the amount of sales. Always double check your numbers!
On Friday, I had the chance to join the Financial Reports meeting with the Rich, the CFO, and Jared, the Senior Accountant. Rich went over the balance sheet, some detail reports for B2B, International, and advised Jared on some changes because of the big orders in June or July. A lot of numbers are boosted up because of the sales, and Rich found out some numbers that are not changing like they are supposed to. For example, since more products are sold and shipped, the warehouse labor cost and the printing cost should also rise by the some ratio. This is where Cornell’s ECB courses are helping me a lot in understanding the problems and the numbers’ relationships within statements.
During the weekend, I got the chance to see Boyce Avenue and to enjoy the original Disneyland in Anaheim!
Tom is an Economics & Business major from Hanoi, Vietnam.