Expense

Employee Accounting Staff Manager

Small Petty Cash

expenses list Voucher

Prepare
small
Prepare Validate
expense list
PCV for the
the expenses
expenses on the
Small PCV
expenses list

Petty Cash PCV

Voucher
A Cash

OR or AR
Procure
items listed N
Update
on the PCV Records

A
CDJ
OR or AR
OR or AR

N
Expenses other than Purchase of Inventories

Some of the expenses the company incurs are not part of its inventories

but are nonetheless important in its normal operations. These expenses are

usually of small amount that may not require their own supplies.

The expenditure cycle starts when an employee communicates a list of

items needed to be procured for production or other operations to the accounting

staff orally or in writing. The latter is preferred. The accounting staff will then

prepare a petty cash voucher, writing down the items requested by the employee.

The petty cash voucher is then given to the branch manager for him to verify and

sign. The branch manager, having the custody of the petty cash fund, will also

be the one to give the money required by the voucher to the employee involved.

After the items have been acquired by the employee, he will give the official

receipt or acknowledgement receipt, of the items not issued OR for by the seller,

to the accounting staff. The staff updates the cash disbursement journal under

his custody. He also electronically scans the official or acknowledgement receipt

and saves it to his computer. The original receipt is also kept in a single place as

backup.
Payroll

HR Department Accounting Staff Branch Manager

Compute Not signed

East West
employee payroll
Bank
salary from
biometrics and
basic salary
Sign
data Computer Payroll
program for
salaries
Signed
Computed Computed payroll
salaries salaries

B
Fill-up the
program with
the salaries of A
every employee
and print payroll

Not signed
payroll
HR Department Accounting Staff Branch Manager

Not signed
payroll

Sign B
Payroll

Signed payroll

East West
Bank

C
HR Department Accounting Staff Branch Manager

East West
Bank

Bank Statement

Update
Records

CDJ

Bank Statement
Signed payroll

N
Payroll Cycle

An HR staff collects data from the biometric system of the company that

keeps the records of the time-in and time-out of every employee in the branch.

The HR department will compute the monthly salaries of the employees, which

include their overtime, holiday, and other premium pays, and print them out to

be given to the accounting staff.

The accounting staff will input the salaries computed on the computer

salary program given by East West bank. After the salary of every employee has

been input, the accounting staff prepares a summary of the payroll and prints it

out. The payroll summary is given to the branch manager for him to sign. After

signing, the payroll will be returned to the accounting staff for him to sign it as

well.

The accounting staff will send the data of the computer program and

attached with them is the signed payroll summary, scanned, to East West Bank.

After a day, at most, when the accounting staff receives a bank statement

with the payroll summary from East West Bank, he updates the cash

disbursement journal in his custody then files the bank statement and payroll

summary