OK, I am going to explain the voucher system in the following steps below.
I will start with payables and then continue with receivables
1. Assume that you are a supervisor in a department and you need 3 printers, you will create a REQUISITION
2. Your Requisition will be routed to the Purchase department for review and approval
3. Once your requisition is approved, purchase department will issued out a purchase order number.
4. 3 copies of purchase order will be issued, one will go to the vendor, one will go into the Accounts Payable department and the last one goes to the receiving department.
5. Receiving department will record receipt once the printers are received.
6. Vendor will also send you an invoice for the printers delivered and this will go to your AP department for processing.
7. AP receives the invoice and compares the it against the purchase order on file and receiving reports, payment voucher is then prepared by AP once everything is correct.
8. Payment voucher is then forwarded to the CFO, treasurer or cashier. A check will be prepared, signed and mailed by any of these individuals.
9. The check goes out with remittance details which indicates the invoice number and the amount related to that invoice.
The following steps relates to sales and receivable.
1. Vendors sales department receives your purchase order and forward it to their credit department for approval.
2. Credit department approves your purchase order and forwards it back to the sales department.
3. Sales department makes 3 copies of sales order, one goes to the billing department, one goes to the inventory control department and I think the last copy stays with sales department.
4. Inventory control reviews the sales order and determines if it’s been approved by the credit department, your printers are then released to the shipping department.
5. Shipping department ships your printers along with a copy of sales order, and a copy of a shipping report will be routed to the billing department
6. Billing department will then review the sales order and the shipping report, an invoice will be prepared once everything is correct
7. 3 copies of invoice will be prepared by the billing department, one will be sent to your company, one will be forwarded to the vendors AR dept. And the last one stays with the billing department
8. Mail dept. receives the check and remittance details, remittance details or advice will be sent to the AR dept. to record against your company's account. The checks will forwarded to treasurer, CFO or cashier for deposit.
Test count can be done either through direct involvement or observation.
Accounting department is mostly record keeping whilst the CFO or treasury dept. maintains custody of asset esp. cash.
I think both AP and AR performs record keeping function. I stand to be corrected tho 🙂
REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!
Mass-CPA
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