Manual System with Minimanl PC Support

Walker Books, Inc.

Group 2
Cash Disbursement System
The accounts payable clerk periodically reviews the open accounts payable
file for liabilities that are due. To maximize returns on invested cash yet still
take advantage of vendor discounts, the clerk will pull the invoice two days
before its applicable due date. Upon finding an open accounts payable file in
need of payment, the clerk manually prepares a check for the amount due as
per the invoice. The hard copy accounts payable ledger is also updated by the
accounts payable clerk. The check number, dollar amount, and other
pertinent data are manually recorded in the hard-copy check register. The
check is then sent to the cash disbursements department. Finally, the invoice
is discarded as it no longer has any relevant information that hasn’t already
been recorded elsewhere.
When the cash disbursements clerk receives the unsigned check, she
examines it to ensure that no one has tampered with any of the
information and that no errors have been made. Because she is familiar
with all of the vendors or any payment amounts that seem excessive.
Assuming everything appears in order, she signs the check using a
signature block that displays the name of the assistant treasurer, Tyler
Matthews. Only Matthews’ signature can validate a vendor check. The
cash disbursements clerk then photocopies the check for audit trail
purposes.
Once the check is signed, it is sent directly to the supplier. The photocopy
of the check is marked as paid and then filed in the cash disbursement
department. The clerk then creates a journal voucher, which is sent to the
general ledger department. Once the general ledger department receives
the journal voucher, the clerk examines it for any obvious errors and then
enters the relevant data into the department PC to update the appropriate
digital general ledger accounts.
Table of Entities and Activities
 Entities Para Activities
Accounts Payable Department 1
(clerk) 1.Review open Accounts Payable
file for liabilities that are due.
2.Pull the invoice two days before
its applicable due date.
3.Prepare check.
4.Update the hard copy check
register.
5.Record in the hard copy check
register the check number, dollar
amount, and other pertinent data.
6.Send check to cash disbursement
department.
7. Discard the invoice
 Entities Para Activities
Cash Disbursement Department 2
(clerk) 8.Examines the unsigned check to
ensure that no one has tampered
with any of the information and that
no errors have been made.
9.Signs the check using a
signature block that displays the
name of the assistant treasurer.
10.Photocopies the check for audit
trail purposes.

3 11.Send the signed check to the

supplier.
12.Mark paid the photocopy.
13.Files check.
14.Creates a journal voucher.
15.Send the journal voucher to the
general ledger department.
Entities Para Activities

General Ledger Department 3 16.Examine the journal voucher

for any obvious errors.
17.Enter the relevant data into
the department PC.
18.Update the appropriate digital
general ledger accounts
Flowchart