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The expenditure cycle is a sequence of processes that occur for a business to go from saying "I need this in order to make whatever it is our company makes" to paying for what they needed.
This process can and does differ among entities depending on the size and complexity of the organization.
For a large organization with great internal control the process usually starts with a purchase requisition. Accounting department matches the documents that they have. These are the purchase order (what we ordered), the receiving report (what we got), and the invoice from the supplier (what we are now being billed for). If these amounts match then the accounting department records a payable and also increases inventory.
Once all of the documents in the preceding paragraph are matched and made sense of the accounting department approves the invoice for payment. They would send a packet including all those documents (called a voucher packet) to the treasury department to write the check.
The treasury department will then write the check and sign it. They then cancel all the supporting documentation by stamping it paid. These voucher packets are sent back to the accounting department for posting of the payment. Which would be a debit to the account payable and a credit to cash.
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Is credit income or expenditure?
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
What are the item's of capital expenditure and recurrent expenditure?
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
What is the meaning of projected expenditure?
projected expenditure
What is a negative capital expenditure?
negative expenditure
Is leasing a capital expenditure?
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
What is expenditure cycle?
The expenditure cycle is a process that individual customers and companies use in finalizing their purchase. It often involves comparing prices, researching the product and determining their own need for the product.
The cycle of earning and spending is an example of?
The cycle of earning and spending is an example of a cash flow cycle. This mainly focuses on the income and expenditure.
Is credit income or expenditure?
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
What is the definition of Recurring Expenditure and Non Recurring Expenditure?
expenditure
What do you mean by revenue expenditure?
Expenditure for which benefit is expected to be taken in one fiscal year from occurance of expenditure is called 'Revenue Expenditure" Expenditure for which benefit is expected to be taken for morethan once year is called 'Capital Expenditure'
Where to hyphenate expenditure?
Expenditure is not hyphenated.
What is irregular expenditure?
what is irregular expenditure
What are the item's of capital expenditure and recurrent expenditure?
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
What are two Malaysia government expenditure?
1) operating expenditure 2) development expenditure
Is defence expenditure is a development expenditure in India?
no
How do you do an expenditure sheet?
It becomes an expenditure when you use it
What is the meaning of projected expenditure?
projected expenditure
