THE CASH DISBURSEMENTS SYSTEMS

AP Department
The AP clerk reviews the open vouchers payable (AP) file for rea due and sends the vouchers and supporting documents to the cash
disbursements department.

Cash Disbursements Department

The cash disbursements clerk receives the voucher packets and reviews the documents for completeness and clerical accuracy. For each
disbursement, the clerk prepares a three-part check and records the check number, dollar amount, voucher number, and other pertinent data
in the check register.

The check, along with the supporting documents, goes to the cash disbursements department manager, or treasurer, for his or her signature.
The negotiable portion of the check is mailed to the supplier. The clerk returns the voucher packet and check copy to the AP department and
files one copy of the check. Finally, the clerk summarizes the entries made to the check register and sends a journal voucher to the general
ledger department.

AP Department
Upon receipt of the voucher packet, the AP clerk removes the liability by recording the check number in the voucher register and filing the
voucher packet in the closed voucher file. Finally, the clerk sends an AP summary to the general ledger department.

General Ledger Department

Based on the journal voucher from cash disbursements and the account summary from AP, the general ledger clerk posts to the general
ledger control accounts and files the documents. This concludes the cash disbursements procedures.
CASH DISBURSEMENT SYSTEM
ACCOUNTS PAYABLE CASH DISBURSEMENTS GENERAL LEDGER

PR
PO
Search Open
Order
SearZ
RR
Voucher File for Order Summary
Journal Voucher
Items Due INVOICE A
Purchase order
Order
Order Check Register

Order
Receiving Cash Disb.
Report Voucher Journal Voucher
Check 3
Invoice Check 2
Check 1
Cash Disb.
Voucher

General Ledger

PO
PO Summary

RR Order
RR
Order Order
Journal Voucher
INVOICE INVOICE

Order
Cash Disb. Cash Order
Disb.
Voucher Voucher
Sign File
Close Checks
Voucher File
Voucher
Check (Copy)
PO
Summary PO
RR
Order Order
Order RR INVOICE
INVOICE
Cash Disb. Check
Cash Disb. Voucher
A Voucher
Check (Copy)
Check (Copy)
Order Open Voucher
Order Supplier
File

Closed
Voucher
File
PREPARE
CHECKS
The A/P department is generally responsible for notification of the need to make cash disbursements and the maintenance of vendor
accounts. Once an invoice is received from the vendor, the A/P dept. would sent the approved voucher to the cashier. Then an A/P
notification will be sent to the general ledger process. Before payment is made to a vendor, specific steps should be taken to enhance the
effectiveness and efficiency of the process. These steps include vendor account reconciliation, cash management techniques, and payment
authorization. Once these process are done, the cashier would then sent a check to the vendor. Then, a paid voucher will be returned to the
A/P department. Lastly, the cashier would sent a notification of cash disbursement to the general process.