topic 7 section 2

• 7: voucher package
• 8: checks
• 9: cash disbursements file (C.D. journal) and A/P (A/P sub ledger)

recall that in step 5, after A/P clerk records the purchase transaction, the clerk files the documents (pur req, P.O., R.R., Vend invoice) in the A/P file according to the invoice's due date

A/P clerk reviews this file of invoices due. When due, the A/P clerk pulls the documents from the file and prepares a voucher

a form used to authorize cash disbursement

consists of the voucher and its related documents (PR, PO, RR, vendor's invoice)

cash disbursement dept

• -Authorization: voucher authorizes cash disbursement transactions
• -Adequate doc and records: vouchers are pre-numbered

after receiving the voucher package from the A/P dept, the clerk in the cash disbursements dept reviews the voucher package for accuracy and then prepares a check

an authorized person(s), normally the treasurer and the check is mailed to the vendor

cancels the voucher package (marks the docs "paid") attaches a copy of the check to the package, and returns the package to the A/P dept for the cash disbursement to be recorded

• -Segregation of duties: custody of assets (signed checks) segregated from recording of cash disbursements (A/P dept)
• -Adequate docs and records: checks are pre-numbered voucher packages are cancelled after payment
• -Access controls: bank checks are safeguarded; signed checks are mailed promptly to vendors
• -Independent verification: cash disbursement clerk reviews the voucher package before preparing check

• -segregation of duties
• -Access controls
• -Independent verification (A/P sub ledger is reconciled with the G/L)

periodically, A/P det sends totals for daily (or weekly) cash disbursements transactions to the G/L dept for posting to the A/P and Cash accts in the master file (G/L)

• -Segregation of duties- same as step 9
• -Access
• -Independent verification- same as step 9