Accounts Payable System in
CU Cashier’s Office
JENNY W. DUNGOG
Submitted in Partial Fulfillment
Of the Requirement for the Degree of
Bachelor of Science in Information Technology
College of Computer Studies
Cagayan de Oro City, 9000 Philippines
1.1 Background and Rationale of the Study
Every small business needs a cash disbursement system that efficiently and securely handles a company’s cash payments. Accounts payable, or A/P, is closely tied to cash disbursements, and most transactions are processed through A/P when a cash payment is made. Proper documentation is part of an effective cash disbursement function, and all cash disbursements must be recorded on the company’s financial records. The presence of good internal controls is important in cash disbursements and helps ensure that cash is paid for legitimate transactions. (Rojas, 2012 )
Cash Disbursement is a payment of money or simply a payment. Usually, the writing of a check to pay for an item previously obligated to be paid, such as loan payment, salary payment or accounts receivable payment is known as Cash Disbursement. Companies will experience numerous disbursements as they run operations. To handle these frequent payments, accountants will often set up a cash disbursement system. This involves a repeatable process to ensure prompt payment and a secured environment for tracking cash expenditures. Many companies require the use of purchase orders to start the cash disbursement process. One stays with the originator, another goes to management and a third to the accounting department. Cash disbursement typically requires the approval of a manager to prevent the waste of a company’s capital. (Hasan, 2013)
In addition, the accounts payable/cash disbursements (AP/CD) process is an interacting structure of people, equipment, activities and controls designed to accomplish the primary functions. These are handle the repetitive work routines of the accounts payable department and the cashier, support the decision needs of those who manage the accounts payable department and the cashier, assist in the preparation of internal and external reports. First, the AP/CD process handles the repetitive work routines of the accounts payable department and cashier by capturing and recording data related to their day-to-day operations, such as recording invoices and paying those invoices. The recorded data then may be used to generate source documents (such as disbursement vouchers and vendor payments) and to produce internal and external reports.
Capitol University is a non-sectarian private Institution and one of the biggest Prestigious Institution in Region X. Every semester, the number of the enrollees reached more or less six thousand (6,000.00) students in all different department of the university. Showing the increase number of enrollees each semester, the Finance Department specifically the office of the cashier has a big challenge on how to provide appropriate data to the accounting office, how to provide data of information to the President and also to the Executive Vice President.
These are the challenges that the cashier head would like to have a system. Knowing the cashiering system are in placed, however there are some internal/external data that need to be improve. They are Daily cash disbursement report, Semestral/fiscal year report, Retrieving data at easy task, Provide easy access on expenses/disbursement per department, Comparative data per year/department, Provide easy information for audit purposes, Accounting data for PACOCOA requirement, Accounting data of information for BIR purposes
For this reason the cashier’s section which the firm considers very important is highly computerized for the purpose of improving on record keeping, proper maintenance of different loss of cash or loss of accounting information.
Each data is very essential in providing each category/system to balance the accounting system. Since, we are one of the high tech computerized University and the center for the development. This study develops an Accounts Payable / Cash Disbursement System that will improve their business transaction and records handling. They can provide up-to-date information with relatively little effort on the part of the user within easy, convenient and comfortable reach. It provides security and integrity of transactions. This system will help the cashier’s office head its burden in encoding the data manually. Working into the bigger perspective that this system will provide easy access of information to the accounting, Executive Vice President and the President as well. Computerized Accounts Payable / Cash Disbursement System in commercial organization that will help to integrate, simplify and streamline all the business processes and transaction cost effectively and easily. Furthermore, this serve as an awakening factor for all offices, from the highest to lowest levels.
1.2 Goals and objectives
The study aims to come up Computerized Accounts Payable / Cash Disbursement System which is useful for faster, better and accurate processes of information system. The system provides efficient and precise output because of the transaction for computation. Accessing and updating records can be done relatively.
• To design AP / Cash Disbursement System that will provide accurate information in order for the company’s financial statements to be accurate and complete. Also provide easy access on expenses or disbursement per department and comparative data per year/department.
• To develop a AP / Cash Disbursement System using server-based including hardware and software components for connecting the system from accounting department and cashier department.
• To evaluate the AP / Cash Disbursement System’s functionality and usability.
1.3 Definition of Terms
Cash disbursements prepares the check and makes an entry in the register or cash disbursements journal. The check and supporting documents go to the department manager or treasurer for signature. The check is mailed to the vendor and a copy, with the documents, is returned to accounts payable. A journal voucher is sent to the general ledger.
General ledger updates the cash and accounts payable control account and reconciles the subsidiary ledger.
Accounts Payable in accounting, accounts payable are debts resulting from purchasing goods or receiving services on credit or on an open account. You have accounts payable when you have not yet paid for the goods or services you have received.
Invoice a written document delivered to a purchaser showing the quantity, price, terms, nature of delivery, and other particulars of goods or services sold or services rendered.
Vendor someone who exchanges goods or services for money.
Vendor Invoice a detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill.
Voucher is an online request for payment that holds invoice information and creates a payment schedule.
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