GENERAL ACCOUNTING SYSTEM FRAMEWORK

The General Accounting Framework indicates the flow of financial transactions from
the original source documents to the book of final entry. Subsidiary books as well as
the General Ledger, serves as the basis for the preparations of various financial report
needed by the management .

Book of
Financial Source Book of Financial
Original
Transactions Document Final Entry Report
Entry

*Official
Receipt
*Deposit Slip

*Cash *Cash Receipt

*Cash Receipt
Voucher
Register
*Time Sheet
*Payroll
Sheet
*Suppliers’
Quotation *Cash
*Purchase Disbursement *General *Trial
*Cash / Check
Request Register Ledger Balance
Disbursement
*Promissory
Notes (Loan
Release)
*Others

*Journal
*Other *General
Voucher
Transactions Journal
*Liquidation
Report with
supporting
documents
*Others

Subsidiary Ledgers
CASH RECEIPT TRANSACTIONS

GUIDELINES:

1. Official Receipt (OR)

2. Official Receipt (Use or Unused ) should be controlled by the

Cashier.

3. The Cashier must issue Official Receipt for all cash or check

collections made.

4. All collections for the day should be deposited intact in the bank

not later than the following banking day.

 PROCEDURES
1. Billing in-charge shall submit the remittance statement of
collection from Dole to the cashier.
2. Cashier should issue Official Receipt for every cash or check
received from the client. Give original copy of Official Receipt to
the Payor. Prepare deposit slip (DS) and deposit the cash and /or
check to the bank not later than the following banking day.
3. Cashier shall prepare summary of the remittance statement with
the format: (Date, Profit Center, Invoice Number, Amount).
4. Submit to the bookkeeper the bank-validated Deposit Slip
together with the duplicate copy of the Official Receipt summary
of remittance statement.
5. The triplicate copy of the Official Receipt must be retained with
the Official Receipt booklet.
6. Bookkeeper should record/encode the cash receipt transactions to
the Cash Receipt Register and file in chronological order the
Official Receipt and Deposit Slip.

Minimum Documentations on File:

1. Official Receipts
2. Bank validated deposit slips
3. Remittance Statement (for collections directly to the depository bank of the coop .
CASH RECEIPTS PROCEDURE FLOWCHART

Start

Cash/Checks from Payor

Supporting Docs

Cashier to prepare summary of Remittance and

Official Receipt
OR 1 - payor
OR 2 - bookkeeper
OR 3 - file

Cashier to deposit the cash or check received

Official Receipt 2, duplicate of deposit slips,

summary of remittance to bookkeeper

Bookkeeper to encode to Cash Receipt

Register and safekeeping of OR with SDs

End
 CASH DISBURSEMENT TRANSACTION

Guidelines :

1. All Disbursements must be supported with a Check Voucher.

2. Check Vouchers must be numbered.
3. Cash disbursement, other than those from the Petty Cash Fund, should be made
by check where the amount involved is above P500.00.
4. Disbursement should never be made directly from cash collections.
5. Check/s must be made payable to specific payee/s. Checks payable to “Cash”
or to “Bearer” should be avoided.
6. Check/s should be signed by the two authorized signatories.
7. All Check Vouchers must be approved by the manager.
8. All Check Vouchers together with supporting documents, should be stamped
with the words:

PAID
Date Paid: ___________

9. The sequence of check numbers must be reviewed when reconciling bank

transaction. Voided and spoiled must be properly marked. “CANCELLED” or
mutilated and filed for future reference and inspection.
10. Payee/s or person receiving the check should acknowledge receipt of payment
by signing on the space provided in the corresponding Check Vouchers.
 PROCEDURE:
1. The requestor shall prepare a request for payment form attaching necessary
supporting documents such as statement of accounts for payment to suppliers
or purchase order with quotation and canvass.
2. The internal auditor shall pre audit the prepared request for payment.
3. Based on the pre audited request for payment, the accounting head shall
prepare check voucher and attach all relevant supporting documents.
4. Present to the manager for the approval of the check voucher.
5. Approved check voucher to cashier for check preparation.
6. Check and check vouchers with supporting documents to two authorized
signatories.
7. Secure the signed check voucher and check from authorized signatories and
release the check to the payee. Let the payee sign the space provided on the
check voucher and secure Official Receipt to be issued by Payee, if
necessary.
8. Stamp with the prescribed PAID stamp the Check Vouchers and all
supporting documents.
9. Encode the transaction to the Cash Disbursement Register and file in
chronological order (monthly) with the supporting documents.

Minimum Documents on File:

10. Check Vouchers duly signed by the Preparer and Approving officers.
11. Related supporting documents must be attached to the check vouchers such as: supplier official
receipts, invoices, quotations, travel orders, payroll sheets, and other documents as may be
applicable.
 CASH DISBURSEMENT FLOWCHART

Petty Cash Fund

Petty Cash Fund PCRS
Replenishment
Replenishments Summary
Petty Cash Vouchers Requestor
Supporting Documents (Request for payment)
Supporting
Documents
Personnel Cost (SalariesPayroll
) Sheet
Internal Auditor
(Pre audit)
Promissory Notes
Loan Release / or Collaterals
Accounting Head
(Check Voucher)

Purchase of Goods/
Suppliers Delivery
Receipt Manager
Services
Suppliers Sales Invoice (Check Voucher Approval)
Purchase Order
Quotation
Cashier
(Check preparation)
Cash Advance & / Travel order
Liquidations
Authorized Signatories
(Check Signature)

Training Training Module

Cashier
(Release of Checks to Payee)

Other Expenses Supporting

Bookkeeper
Documents
(Check Voucher to Encode to
Cash Disbursement Register)
 PETTY CASH DISBURSEMENT & REPLENISHMENT

Guidelines:

1. The Petty Cash may be maintained at a fixed amount of P5,000.00 for minor recurring
expenses and / or advances.
2. A minimum single disbursement limit must be set and all non-recurring disbursements
exceeding this limit must be paid by check.
3. The funds should be kept under the imprest fund system. At any given time, the fund set
up should equal the sum of the unreplenished Petty Cash, unliquidated cash advances, plus
the remaining cash in the funds.
4. The funds should not be mixed with the Custodian's personal and other cash funds.
5. The fund should not be used to accommodate personal and company checks issued by the
parties.
6. The Petty Cash Voucher, together with supporting documents should be stamped with the
words:

PAID
Date Paid: ___________

7. The Petty Cash Fund Custodian should keep the fund in a secure place .
8. Access to petty cash should be restricted to one person only . In the absence of the assigned
Petty Cash Custodian, the management may designate temporarily another staff to handle
the petty cash fund.
9. Cash count should be done by the Petty Cash Custodian every afternoon.

Minimum Documentation on File :

1. Approved petty cash voucher .

2. Original copy of supporting documents, i.e. invoice, official receipts (OR), bus tickets or
simulated invoices for items where invoice or OR is not available.
3. Approved travel itinerary (for transportation expenses)
4. Any other supporting documents that may be secured.
 PROCEDURES:
1. Establishment of Petty Cash Fund

a. The cashier shall prepare a request for payment for the fixed amount of Petty Cash Fund to be
established.
b. Request to internal auditor for pre audit.
c. Pre audited request to accounting head for check voucher preparation.
d. Check voucher to manager for approval.
e. Approved check voucher cashier for check preparation.
f. Check to authorized signatories.
g. After signing, encash the check from the bank. Safe keep the cash in a Petty Cash box and keep
it in a secure place within the office.
h. Forward the Check Voucher to the Bookkeeper for recording to the Cash Disbursement Register.

2. Disbursement from the Petty Cash Fund

a. The requestor shall prepare a Petty Cash Voucher (PCV) for amount needed. Present to manager
for approval, if necessary.
b. Present to Petty Cash Custodian the approved PCV for release of the amount requested.
c. The Petty Cash Custodian should release the amount needed as appearing on the Petty Cash
Voucher.
d. After using the amount, secure from the requestor the supporting documents (SD’s) and attach to
the Petty Cash Voucher for temporary filing in preparation for replenishment.

3. Replenishment of Petty Cash Fund

When the Fund reaches a minimum level, i.e. 10% of the PCF, the replenishment should be prepared
to have the cash amount back to the Petty Cash Fund.

a. The Petty Cash Custodian shall prepare request for payment and summary of the paid Petty Cash
Voucher in chronological order and indicating the distributions of each Petty Cash Voucher &
compute the total amount of each column. Forward to the internal auditor for pre auditing.
b. Accounting head shall prepare a Check Voucher & attach the Petty Cash Voucher replenishment
summary with the Supporting Documents.
c. Check voucher to manager for approval.
d. Approved check voucher to cashier for check preparation.
e. Checks with check vouchers and SDs to authorized signatories.
f. Check to cashier for encashment, safekeeping and disbursement.
g. Forward the Check Voucher to the Bookkeeper for encoding to the Cash Disbursement Register.
 Petty Cash Funds & Replenishment
Procedure & Flowchart

A. DISBURSEMENT

Start

Requestor to prepare PCV

yes
Manager for Approval? To Manager
for approval

no

Petty Cash Custodian to disburse cash

Requestor for payment use

Requestor to return supporting documents

Petty Cash Custodian to attach SDs to petty cash

voucher (to accumulate until replenishment)
B. REPLENISHMENT

The PCFC shall prepare a summary of Paid PCV’s

start

PCC shall prepare PC replenishment summary based on

the accumulated pcv and request for payment

Internal Auditor for pre audit

Accounting Head for check voucher preparation

Manager for approval of the check voucher

Cashier for check preparation

Check to authorized signatories

Cashier for encashment, safekeeping and disbursement

Check voucher to bookkeeper for encoding

CASH ADVANCES & LIQUIDATIONS

Cash Advances

Guidelines :

1. All Cash Advance Requests (CAR) and Travel Order (TO) should be
approved by the Manager.
2. The Liquidation Report (LR) with the supporting documents,
should be stamped .

PAID
Date Paid : ___________________

3. Cash advances should be liquidated within one (01) week from the
completion date of the activity.
4. No subsequent cash advances shall be given to requisitioner with
unliquidated cash advances,

Minimum Documentation on File

5. Approved Cash Advance Request or TO.

6. Liquidation Report (LR) with supporting documents such as plane tickets, invoices, official
receipts, etc.
PROCEDURE:
1. Cash Advance Request

a. In case of travel advances, the requisitioner should prepare Itinerary of travel

(IT).For purpose other than travel, use Cash Advance Request (CAR).Fill up
the form properly and indicate the date , amount needed and purpose of the
cash advance. Present IT/CAR to the manager for approval.
b. The accounting head shall prepare Check Voucher .
c. Cashier shall prepare check and have it signed by the authorized signatories.
Release cheque to the requestor.
d. Check voucher to bookkeeper for encoding.
e. After the expenditures are incurred and the necessary supporting documents
(SDs) are available, the requestor should prepare Liquidation Report (LR).

2. Liquidation of Cash Advance

f. The requestor should present Liquidation Report (LR),together with the SDs,
to the internal auditor for checking. If expenditures equal the amount of
cash advance, submit liquidation report with SDs to bookkeeper.
g. Should the expenditures exceed the amount cash advance the cashier will
prepare payment to be sourced from the petty cash fund if the amount is
below P500.00 or it can be made through check if above P500.00. If refund
or unspent amount is needed, the requisitioner should remit the amount to
the cashier for deposit and OR has to be issued.
h. The bookkeeper should prepare a Journal Voucher (JV) for the LR and
attach the LR together with the SDs.
 Personnel Cost or Salaries

Guidelines:

1. Personnel should have a Daily Time Record (DTR) checked by the HR

Officer and approved by the manager for staff.
2. Personnel should have DTR checked by Supervisor, conformed by the
Client’s Supervisor.

Minimum documents on file

3. Approved Daily Time Record (DTR).

4. Payroll sheet duly signed by the individual employees acknowledging receipt of amount.

Procedure:

5. Based on the approved Daily Time Record or time sheet, the Payroll
Officer shall prepare Payroll Sheet (PS) by computing the amount due for
each personnel for the payroll period and computing the total amount.
6. Present Payroll Sheet and Request for Payment to internal auditor for
review and pre audit.
7. Pre audited request to accounting head for check voucher preparation.
8. Check voucher to manager for approval.
9. Payroll officer to prepare pay slips.
10. Approved check voucher to cashier. Cashier to prepare checks and pay
outs.
11. Checks to authorized signatories.
12. Payroll officer to release to personnel.
13. Check voucher with supporting documents to bookkeeper for encoding to
Cash Disbursement Register.
 PROCUREMENT OF MATERIALS

Guidelines:

1. Purchase of materials / supplies should be based on the approved

Purchase Requisition.
2. A purchase order shall be prepared and a copy of canvass /if
necessary quotations must be attached and approved by the
Manager.
3. A purchaser should be aware of the quantities and specifications
ordered by the Requistioner and corresponds to the quantities and
specifications invoiced and received.
4. Payment to suppliers should be properly approved and must be
made by check in the name of the suppliers.

Minimum Documentations on File:

a. Purchase Requisition
b. Canvass on quotations
c. Duly approved Purchase Order
d. Delivery Receipts / Sales Invoice/ Charge Invoice of suppliers.
PROCEDURE (Procurement)

1. A requisitioner / storekeeper shall submit requisition of materials

to the authorized staff.
2. Authorized staff accomplishes Purchase Requisition (PR) and
determine whether a quotation is necessary, If needed, request at
least three (3) supplier to submit quotations.
3. Present the quotations to the Manager for selection and approval.
4. Authorized staff shall prepare a Purchase Order addressed to the
supplier duly signed by the Manager.
5. Authorized staff shall distribute the approved Purchase Order to
the Purchaser for submission to the supplier and to the
Bookkeeper.
6. Purchaser shall turn over the materials to the storekeeper /
authorized staff .
7. Authorized staff / storekeeper shall inspect and double check
before acknowledging receipt. Compare PO with the Suppliers
Delivery Receipt (SDR) / Charge Invoice and sign on the SDR /CI
to acknowledge receipt of the items delivered and to evidence
checking against PO.
8. For return materials, purchaser shall prepare a materials/supplies
return slip and immediately return the materials to the supplier and
ask supplier for a credit memo.
9. Post to stock card and conduct inventory weekly/monthly.
10. Forward to accounting the Suppliers Delivery Receipt /Charge
Invoice for payment processing .
Materials / Supplies Requisition & Issuances

Guidelines :

1. Adequate storage space, enclosed and well-protected, should be

provided and manned by a Storekeeper.
2. Requisition of materials and supplies must be done through an
approved Requisition and Issue Slip (RIS).
3. Stock Cards should be maintained; record the receipts, issuances and
returns of items.
4. Inventory should be done weekly or monthly.

Minimum Documentation on File

5. Approved Requisition and Issue Slip duly signed by the recipient of materials or
supplies.
6. Stock Cards
PROCEDURES

1. Based on the approved contract requirements, the

requisitioner should obtain a complete Requisition and
Issue Slip (RIS) and present the same to the manager for
approval.

2. After approval, the requisitioner should present RIS to

the Storekeeper as basis for the release of the
requisitioned item/s .

3. The Storekeeper will have to number the RIS then

release the requisitioned item/s based on the RIS and
ask the Requisitioner to sign RIS to acknowledge
receipt. Indicate in RIS that the item/s have been
released .

4. Post RIS in the stock card and file RIS numerically .

5. Prepare inventory report at the end of the project.

Account Payables

Guidelines

1. Bookkeeper should maintain subsidiary ledgers for

individual suppliers.
2. Supplier must prepare and submit statement of
account to the customer .
3. A statement of account should be check and reviewed
for invoices and filed .
4. Cashier should check availability of fund before
preparation of payment .
5. Payment to supplier should be properly approved and
must be made by check in the name of the supplier.

Minimum Documentation on File :

6. Subsidiary Ledgers.
7. Statement of Accounts
8. Charge Invoice of suppliers
9. Duly approved PO’s
Account Payables

Procedures

1. Suppliers should submit statement of account for billing to

accounting.

2. Bookkeeper counter check the invoices submitted by the supplier

to the invoices & PO filed and prepare request for payment.

3. Request for payment to internal auditor for pre audit.

4. Accounting head to prepare Check Voucher for approval to the

manager.

5. Cashier to check the availability of funds before payment made.

6. Release the check to the suppliers and ask for Official Receipt.
Training Expenses
Guidelines:

a. Training Program must be within the project activity and

objectives.

b. Training budget should be prepared by the HR or Training

officer and approved by the manager.

c. The number of participants has to be indicated in the

budget .

d. Training participants must sign the Daily Participants

Attendance Sheet (DPAS) to evidence training attendance.

Minimum Documentation on File

1. Training proposal and budget, specifying training design, schedule and venue.

2. Daily participants Attendance Sheet signed by the training participants .

3. Training Documentations Report (if applicable)

PROCEDURES

1. Based on the approved training program, the HR or Training

officer should prepare the training design and budget (TDB) for
the specific training.

2. The manager will review and approved the said Training Design
Budget.

3. Training Officer should request quotations, contact trainors and

invite participants .

4. Forward the approved Training Design Budget, quotations and

other Supporting Documents to the Cashier for Check Voucher
and cheque preparation (see CDV procedures ).