Professional Documents
Culture Documents
Expenditure Cycle Part 1
Expenditure Cycle Part 1
• Receiving Goods
slide 255
The Cash Disbursements System
• Identify Liablities Due
-identify items that have come due
-sends payment approval in the form of a voucher packet
• Update AP Record
-removes the liability by debiting the AP subsidiary account
-account summary is prepared and sent to general ledger function
slide 257
Computer-Based Purchases and
Cash Disbursements Applications
DATA PROCESSING: STEP 1
• Open purchase requisition file
Purchasing Department
-send copies of PO to:
• Vendor
• AP
• Data processing
• Purchasing debt file
slide 264
slide 265
3 Alternatives
Authorizing & Ordering
Inventories
-Automatically prepare PO documents and send it to purchasing dept for review & signing
-Purchasing agent now mails approved POS to vendor and to other internal users
• Directing POS to vendor & internal users
• This does not go to purchasing dept, system produces transaction list of items ordered to be reviewed by
purchasing agent
• Electronic data interchange
• This produces NO PHYSICAL POS; thus, computer now does the buying & selling via
telecommunications link
• No human intervention is happening in this alternative
STEP 2
PO sent to data processing
open PO file -> PO requisition file
Receiving department
-upon arrival of goods,
receiving clerk
-prepares receiving report
-send a copy to
• store (w/ goods)
• purchasing
• data processing
Step 3
The batch program updates inventory subsidiary file
• remove “on order flag”
• calculate total of inventory receipts-used in general ledger update
procedure
• open PO file -> closed PO file
Accounts payable Department
AP clerk
• reconciles w/ supporting document-previously placed in AP pending file
• prepares voucher file and sent it to data processing
STEP 4
Voucher file (from voucher documents)
• validates voucher records against valid vendor file and adds
them to voucher register
• Batch totals posted to AP control account in general ledger
Cash Disbursement
Procedures
Cash Disbursement Procedures
• Data Processing Department