PETTY CASH BISBURSEMENT

Person Involved:

1. Requisitioning Employee/End-user
2. Petty Custodian/Asst Cashier/Acctg Clerk
3. Bookkeeper
4. Manager
5. Cashier

Documents or Business Forms

1. Petty Cash Requisitioning Slip (PRS)

2. Petty Cash Voucher
3. Supplier’s Invoice/ OR
4. Proof of payment (Itinerary trip, proof of receipt)
5. Supplier’s Delivery Receipt

Summarizing Document

1. Summary of Petty Cash Disbursement Report

2. Summary of Petty Cash Expenses.

Procedures:

1. Requisitioning Employee (RE) fails out the petty cash disbursement slip.
2. Manager approves the PCRS
3. Petty cash custodian (PCC) releases the amount requested and RA acknowledges the receipt of
cash
4. Requisitioning Employee purchases the item and obtain suppliers receipt/invoices & forward
them to PCC
- If expenses are less than the amount requested, the excess will be returned.
5. Petty Cash Custodian prepares petty cash voucher (PCV) with attached Supplier’s
Receipt/Invoices & PCRS duly signed by RE
6. Bookkeeper checks & verifies the Petty Cash Voucher (PCV)
7. Manager approves and forward All Supporting Documents (ASD) to PCC
8. Petty Cash Custodian (PCC) prepares summary of Petty Cash Expenses duly attached PVC &
ASD for replenishment
9. PCC files the documents temporarily for future retrieval.
 Procedures – Petty Cash Replenishment

1. Petty Cash Custodian retrieves petty cash vouchers with all supporting documents.
2. PCC prepares petty cash disbursement summary (PCDS) in two (2) copies.
3. Bookkeeper checks and verifies the PCDS and ASD
4. Manager approves the PCDS with ASD
5. Cashier prepares check voucher and cheque attached ASD
6. Bookkeeper checks and verifies the documents
7. Manager approves and sign the cheque.
8. Cashier records the check disbursement in the check register book (CRB)
9. Petty cash custodian encashes the check and the money are placed in the petty cash box.
10. Bookkeeper records the Check Voucher in the cash disbursement journal and subsequently posts
in the CASL and General Ledger (GL)
11. Bookkeeper files and check voucher and ASD in chronological order.

CASH PURCHASES
Persons Involved:

1. Requisitioning Employee/Purchaser
2. Inventory Clerk
3. Bookkeeper
4. Cashier
5. Manager
6. Supplier
7. Committee on Bids and Award

Source Documents:
1. Inventory Requisition Slip (IRS)
2. Purchase Order
3. Supplier’s Quotation
4. Supplier’s Cash Invoice
5. Receiving Report
6. Check Voucher
7. Check

Book of Accounts:
1. Purchase Journal
2. General Ledger
Cash Register Book
Procedures:

1. The transaction starts from the Requisitioning Employee. The requisitioning

employee/purchaser prepares an Inventory Requisition Slip (IRS) for goods to be purchased.
2. Bookkeeper checks and verifies the detail of request in the IRS.
3. Manager further verifies and approves IRS.
4. Purchaser canvases the items requested from the listed supplier.
5. The purchaser prepares two (2) copies of purchase order based on the bidden price of the
supplier.
6. Bookkeeper checks and verifies the prepared purchase order (PO) with attached approved IRS.
7. Bookkeeper prepares Check Voucher (CV) with attached supporting documents.
8. Manager further verifies and approved the PO and CV with attached supporting documents.
9. Cashier prepares check for the payment of the goods to be purchased with attached supporting
documents.
10. Purchaser forwards the approved PO to the supplier to inform the Supplier for the delivery of
goods ordered.
11. Suppliers delivers the good based on the PO and issues Supplier’s Cash Invoice (SCI)
12. Purchaser checks and acknowledges the receipt of payment.
13. Cashier pays the supplier and the supplier acknowledge the receipt of payment.
14. Cashier forwards the documents to the bookkeeper for recording and filing.
15. Bookkeeper journalizes the transaction in the Cash Disbursement Journal, post in the Inventory
Stock cards and posts the transaction in the General Ledger.
 Sales on Account

Persons Involved:
1. Sales Clerk/Rep.
2. Sales Supervisor
3. Manager
4. Inventory Clerk
5. Bookkeeper

Documents Required:
1. Customer’s Purchase Order
2. Customer’s Sales Invoice
3. Inventory Issuance Slip/ Gate Pass
4. Delivery Receipt
5. Daily Sales Summary Report (DSSR)

Book of Accounts:
1. Sales Journal
2. General Journal
3. General Ledger/ Subsidiary Ledger

Procedures:
1. Customer presents purchase order to the sales representative.
2. Sales Representative presents customer purchase order to the sales supervisor.
3. Sales Supervisor checks, verifies, and recommends for approval by the Manager.
4. Manager further verifies and approves the customer credit purchase.
5. Inventory clerk prepares the items ordered.
6. Sales supervisor/Production supervisor checks and verifies the items to be delivered.
7. Inventory clerk prepares gate pass/pick-up ticket/bodega pass/trip ticket.
8. Customer acknowledges the items delivered with delivery receipt and sales invoice.
9. Delivery crew returns the acknowledged delivery receipt and sales invice to the inventory clerk.
10. Inventory clerk prepares a Daily Sales Summary Report with attached supporting documents.
11. Bookkeeper checks and verifies the DSSR and with ASD.
12. Manager approves the DSSR with attached supporting documents.
13. Bookkeeper records the DSSR in the proper journals and ledger.
14. Inventory clerk posts the transactions in the individual subsidiary ledger.
15. Inventory clerk updates the posting and prepares Statement of Account(SOA).
16. Messenger delivers the SOA to the customer.
17. Customer acknowledges the SOA.
18. Messenger returns the signed SOA to the inventory clerk.
19. Inventory clerk files the SOA and monitor for collection.
20. Inventory clerk files the accounting documents in chronological order.
 Petty Cash Disbursement Flowchart

REQUESTIONING PEOPLE BOOKKEEPER MANAGER PETTYCASHCUSTODIAN

STAR
T

PCRS PRCS PRCS

SOR PCV

SOR

PCV

SOR

PCV PCV

ASD ASD

LEGEND
PRCS – Petty Cash Requisition Slip
PCV – Petty Cash Voucher
SOR - Supplier Officer Receipt TF
ASD – All supporting Documents
TF – Tengocary File
 CASH PURCHASES
Requisitioning Employee Bookkeeper Manager Purchaser

IRS IRS IRS Canvassing

IRS
PO 1
PO 2

IRS IRS
IRS
PO 1 PO 1
PO 1 PO 2
LEGEND PO 2
IRS- Inventory Requisition Slip PO 2 c
PO-Purchase Order SCI
CV- Check Voucher S
C- Check
F- File CV c
P- Cash

W G

IRS
PO 2
SCI

F
CV

Recording in CDJ,
Posting in Stock cards
and General Ledger
 PETTYCASH REPLENISHMENT
Petty cash custodian Bookkeeper Manager Cashier

PCDS CV
PCDS PCDS
Retrieves
PCV PCV
PCV PCV
ASD ASD
ASD ASD

A c
A

CV 1 CV 1

PCDS ASD
PCV c P Encashment

ASD
c
CRB

CV 1 CDG CASL
ASD

F GL

LEGEND
PCDS- Petty Cash Disbursement Slip
PCV- Petty Cash Voucher
ASD- All Supporting Documents
CV- Check Voucher
C- Check
F- File
CASL - Cash Advance Subsidiary
Ledger
GL- General Ledger
P- Cash