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    3 Disbursement Cycle

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    Crest Tine
    1) The expenditure/disbursement cycle involves processing payments for obligations incurred during purchases. 2) The accounting department reviews open accounts payable and prepares voucher packets for payment authorization. 3) The treasury department receives voucher packets, prepares checks, updates records, and mails checks to vendors after required signatures.

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    3 Disbursement Cycle

    Uploaded by

    Crest Tine
    31 views1 page
    1) The expenditure/disbursement cycle involves processing payments for obligations incurred during purchases. 2) The accounting department reviews open accounts payable and prepares voucher packets for payment authorization. 3) The treasury department receives voucher packets, prepares checks, updates records, and mails checks to vendors after required signatures.

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    3-Disbursement-cycle

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    1) The expenditure/disbursement cycle involves processing payments for obligations incurred during purchases. 2) The accounting department reviews open accounts payable and prepares voucher packets for payment authorization. 3) The treasury department receives voucher packets, prepares checks, updates records, and mails checks to vendors after required signatures.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views1 page

    3 Disbursement Cycle

    Uploaded by

    Crest Tine
    1) The expenditure/disbursement cycle involves processing payments for obligations incurred during purchases. 2) The accounting department reviews open accounts payable and prepares voucher packets for payment authorization. 3) The treasury department receives voucher packets, prepares checks, updates records, and mails checks to vendors after required signatures.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Expenditure/Disbursement Cycle

    Cash disbursement cycle involves processing the


    payment of obligation created in the purchase

    2
    AUTHORIZATION
    ACCTS system.
    sends voucher to the treasury TREASURY DISBURSEMENT

    CUSTODY
    PAYABLE / Cash disbursement
    Function (department)
    (acctg department) GENERAL

    RECORDING
     Each day, AP function reviews the LEDGER  Cashier:
    open AP File / VP File to Identify Function 1. Receive and review documents for completeness and accuracy.
    liabilities due 2. Prepares check (2 copies)
    (acctg department) 3. Updates check register/ cash disbursement journals. Provides AUDIT TRAIL
     Approves / authorizes the payment
    for verifying the
    by preparing authenticity.
     SIGNING THE CHECK
    VOUCHER PACKET
     Journal Voucher is reconciled with the of the check depends on the organization’s MATERIALITY THRESHOLD.
    AP summary. Material Amount – 2 Signatory
     AP control and Cash Accounts are It shall be signed by person Immaterial Amount – 1 Signatory
    authorized by mgt. or BOD.
    then updated. hgd ex. Treasurer + (president, etc.)
    for more than 1 signatory
    Notes:
    Voucher Packet/Voucher Envelope/ Voucher Other Notes:
    A formal document evidencing an approved  MAILING THE CHECK
    request for payment Journal Voucher Shall be made by the person who signed it last. (usually the treasurer).
    Shows the total reduction in the firm’s Original – vendor
    obligations and cash account as a result of Copy – voucher packet
    payments to suppliers.
    AP record is updated by debiting AP and the
    voucher is filed in closed AP/Voucher File.  CANCELLATION OF VOUCHER
    Principal objective in auditing CDC: Voucher shall be canceled IMMEDIATELY after the checks are mailed to prevent
    double payment.
    then, an account To ensure that only valid creditors receive
    summary is prepared. payment and that amounts paid are timely VOUCHER PACKET
     SUMMARIZE UPDATES IN CHECK REGISTER
    and correct.
    in the form of a journal voucher. *
    ACCOUNT Timing of payment:
    SUMMARY Good Cash Management Policy – payments
    JOURNAL VOUCHER HOW TO CANCEL?
    __________
    for goods and services shall be made only  STAMP “PAID”
    ________ when the account is due. Accounts Payable xx  Write check # on the voucher
    ___ Cash xx

    sends back voucher to the accounting department

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