Accounting System 6

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CHAPTER 1 – REVENUE SYSTEM

A. CASH REVENUE (CASH RECEIPTS) SYSTEMS

I. Policies

1. All cash receipts shall be covered with pre-numbered Official Receipts issued in sequential manner.

2. All cash collections must be kept in a safe drawer separate from other funds.

3. All collections must be deposited intact at the end of the day or the next banking day.

4. A Daily Collection Report (DCR) shall be prepared covering all collections and deposits.

II. Systems and Procedures

1. The Cashier issues O.R. in three (3) copies upon receipt of cash. The O.R. shall be issued in sequential manner by the Cashier. The Cashier gives the original copy of the O.R. to the customer/payor.

2. The Cashier keeps cash in a safe drawer.

3. At the end of the day of the next banking day, the Cashier deposits all collection intact to depository bank by preparing the Deposit Slip (DS).

4. The Cashier prepares Daily Collection Report (DCR) in two (2) copies and attached to it the duplicate O.R. and the validated Deposit Slip.

5. The Cashier forwards the DCR (with attached duplicate O.R. and validated Deposit Slip) to his supervisor for review.

6. The duly noted original copy of the DCR (with attached duplicate O.R. and validated Deposit Slip) is forwarded to Accounting by the Cashier and files the duplicate DCR and triplicate O.R.

III. Systems Flow

A. Cash Revenue System

IV. Forms and Formats

a. Official Receipt

This form is used to acknowledge receipt of cash from customer/payor

b. Daily Collection Report

This form is used to report daily collections and deposits.

V. Duties and Responsibilities

The Cashier

I. Position Title : Cashier
Job Level :

II. Organizational Relationships
Section : Cash
Department : Finance

III. Purpose of the Job: To receive collections, make deposits and prepare report.

IV. Duties and Responsibilities

1. Issues O.R. in three (3) copies upon receipt of cash. The O.R. shall be issued in sequential manner. Gives the original copy of the O.R. to the customer/payor.

2. Keeps cash in a safe drawer.

3. At the end of the day of the next banking day, the Cashier deposits all collection intact to depository bank by preparing the Deposit Slip (DS).

4. The Cashier prepares Daily Collection Report (DCR) in two (2) copies and attached to it the duplicate O.R. and the validated Deposit Slip.

5. The Cashier forwards the DCR (with attached duplicate O.R. and validated Deposit Slip) to his supervisor for review.

6. The Cashier forwards the duly noted original copy of the DCR (with attached duplicate O.R. and validated Deposit Slip) is forwarded to Accounting by the Cashier and files the duplicate DCR and triplicate O.R.

7. Performs other duties as may be required by Supervisor Office

The Finance Officer

I. Position Title: Finance Officer
Job Level :

II. Organizational Relationships

Department : Finance

III. Purpose of the Job: To review and signs the Daily Collection Report.

V. Duties and Responsibilities

1. Review the mathematical accuracy of the DCR by comparing the amount in the O.Rs and Deposit Slips.

2. Signs the DCR.

3. Performs other duties as may be required by Superior Officer.

B. REVENUE ON ACCOUNT

I. Policies

1. All credit sales must have prior approval of the Credit Manager (based on the company’s Credit Policy).

2. All credit sales must be covered with a pre-numbered Charge Invoice.

3....
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