Process Manual

Petty Cash Disbursement and Replenishment

Small expenses shall be disbursed from petty cash. The company implements the
fluctuating system in the recording of petty cash disbursements and replenishment. 

Process:

1. In the Journal Voucher, record the replenishment of petty cash. Specify the date,
name, and particulars.

2. Entries would be debited to Petty Cash and credited to Cash on Hand.

3. Input in the notes the date of collections in which the petty cash was disbursed.

4. All disbursements from Petty Cash will be recorded in the Cash Voucher. The
entries would be debited to Expenses and credited to Petty Cash.

Disbursements from Cash Collections

At all times, cash collections should not be depleted or used until deposited. But due
to the current situation where a pandemic has hit, this process is not being followed.
To cater the problem in the recording of disbursements from cash collection, see the
process below:

Process:

1. Any disbursement from cash collection shall be manually recorded in the

Cash/Check Voucher physical document. Specify the date, name, and particulars.
2.
3. The later would be recorded in the Journal Voucher of the accounting system.
Specify the date, name, and particulars
4. The entries would be debited to Expenses, Assets, and Payable and credited to Cash
on Hand.
5. Input in the remarks row of cash on hand in the journal entries the date of
collections in which the disbursement came from.

Collection of Fees

Collection from fees should be recorded in the Official Receipt module of the
accounting system.

Process:

1. Open the Official Receipt module. Specify the date, name, and particulars.
2. The journal entries would be debited to Cash or Cash in Bank and credited to
Accounts Receivable - Tuition Fees or Accounts Receivable - Miscellaneous Fees.
Then Save.

Other Collections

Collection from Sale

Collections arising from other than fees will be recorded in the Provisional Receipt
module.

Process:

1. Open the Provisional Receipt module. Specify the date, name, and particulars.
2. The journal entries depends on the following transaction:

A. Collection from Sale of Books, Notebooks, and Uniforms

Debit Cash on Hand

Credit Notebook Sales/ Book Sales/ Uniforms/Others

B. Collection received from employee receivables to CDC

Debit Cash on Hand

Credit Accounts Receivables - Employees

C. Accommodations

Debit Cash on Hand

Credit Payable

Revenue Recognition

Revenues must be recognized in the period in which they are realized. In the existing
system, revenues are recorded when they are assessed rather than when they are
realized.