Dynamics GP – Cash Disbursement Application System

Accounts Payable

The accounts payable department receives copies of the purchase requisition, purchase order receiving report and vendor invoice. These documents are reviewed, certified as to completeness, and assemble in a voucher package. The voucher package is filed by date.

Periodically the voucher package file is reviewed and voucher packages that are due are pulled for payment. Accounts payable performs payment processing calculating the amount due, discount (if any), and other such items. A voucher check is prepared for each voucher. Voucher checks are posted to the voucher register. A total of these postings are prepared. Voucher packages are posted to the accounts payable ledger. This posting is summarized on a journal voucher and a distribution voucher. The voucher checks, voucher packages, and control total are approved and forwarded to the cash disbursements department. The journal voucher is forwarded to general ledger. The distribution voucher is forwarded to the department managing the expense ledger.

Cash Disbursements

After the voucher checks and voucher packages are reviewed the checks are signed and the voucher packages are canceled and filed by number. The voucher checks are then posted to a check register. This posting is total and reconciled to the control total received from accounts payable. Voucher checks are forwarded directly to the payees. The control total is forwarded to general ledger.

Expense Ledger

The distribution voucher is posted to the expense ledger and/or inventory ledger as appropriate. A distribution summary is prepared, reconciled to the distribution voucher, and approved. The distribution voucher and a copy of the distribution report are filed by date. A copy of the distribution summary is for warded to general ledger.

General Ledger

The distribution summary received from the expense ledger the journal voucher received from accounts payable and the control total from cash disbursements are reconciled and the totals are posted to the general ledger. The distribution summary received from the expense ledger, the journal voucher received from the accounts payable department, and the control total from the cash disbursements department are filed by date.

Internal audit

The canceled checks are received from the bank along with the bank statement. Independent bank reconciliation is an important control in a cash disbursement application system.

Voucher Systems

A voucher system is essentially a review technique. A system in which every organizational expenditure must be documented with an approved voucher. The real control over disbursements is a final review of documents evidencing the entire transaction prior to the authorization of payment. A voucher payable system, unlike the accounts payable system encompasses all expenditures, including trade accounts, payroll capital expenditure, and so on.

 

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Dynamics GP – Recourse Management or Payroll System

Overview

A payroll / personnel system involves all phases of payroll processing and personnel reporting. The system provides a means of promptly and accurately paying employees, generating the necessary payroll reports, and supplying management with the required employee skills information. The processing should include a deduction for with holding taxes, specialized deductions, government reporting, and internal personnel requirements. An efficient system is necessary to establish and maintain good employer-employee relationships.

System Function in Payroll Application Program

Two data flows enter the payroll system from departmental managers and supervisor’s attendance time records and job time records. Attendance time records shows the time period that employees are in attendance at the job site and available for work. These records are used to calculate the gross amount of each employees pay. Job time records on the other hand reflect that start and stop times on specific jobs. Their purpose is to allow the distribution of payroll costs to jobs in process (or to other accounts).

Attendance time records maintained near the entrance of the workplace and after take the physical form of time sheets that are stamped as employees come and go. Job time records are prepared at the worksite by employees entering the time each job is started and stopped. 

 “Reconcile hours worked” compares the total hours of each works as shown by at the attendance time record with the hours reflected on the job time records for that employee. The hours should agree. This reconciliation’s is one of the payroll system control plans.

Personnel

The personnel office is responsible for placing people on the company’s payroll, specifying rates of pay, and authorizing all deductions from pay. All changes such as adding, or deleting employees, changing pay rates, or changing levels of deductions from pay must be authorized by the personnel office. The personnel function is distinct from time keeping and from payroll preparation function.

Time keeping

The time keeping function is responsible for the preparation and control of time reports and job time tickets. In manufacturing firm, an hourly employee typically clocks on and off of the job. At the end of the period, the employee’s time card or time report indicates the amount of time that the employee was on the job and the time that he or she expects to receive pay for. Time keeping is responsible for collecting and maintaining time cards and reconciling these data to job time summary reports that are received from production.

Payroll

The payroll department is responsible for the actual computation and preparation of payroll. Note that preparing payroll is independent of preparation of the input data on which pay is based, the time reports and personnel data. Personnel data are received from the personnel office; time reports are received from time keeping. The payroll register details the computation of net pay (gross pay less deductions from pay). Pay checks are sent cash payment for signature, review, and distributions. A copy of the payroll register is sent to accounts payable to initiate the recording of a voucher for the payroll.

 

 

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Dynamics GP – Processing Non Invoiced Disbursements

Disbursements that are not typically supported by invoices such as, repayment of debt obligation and interest and the like. In this case we may have a true voucher system and a non voucher system. In a true voucher system the expenditure and payable recognize before cash payment is made. But in a non-voucher system payable is not recognize before cash payment is made.

The following diagram is a logical data flow diagram that shows the processing of non-invoiced payments under two different assumptions:

  1. A true voucher system is used in which all expenditures must be vouched that is, formally approved for payments and recorded as a payable before they can be paid, and
  2. A non-voucher system is employed.

Assuming a true voucher system is used

 

Assuming a non-voucher system is used.

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