What function are involved in the processing of cash receipts transaction?
Cash Receipt Guidelines and Best PracticesOctober 2011 Show Scope These guidelines include all departments at the University of Richmond that accept cash or check payments from students, faculty, or staff for miscellaneous charges. These guidelines do not cover the following transactions: (1) charitable gift payments, which should be sent to Advancement services for proper recording, and (2) departments that create their own Banner cashier sessions and deposits are excluded from this policy. Purpose To establish and maintain uniform cash receipting policies and procedures across the University of Richmond campus. Guidelines University departments in a funds handling capacity should be committed to establishing and maintaining strong internal controls around the cash receipts process to prevent the mishandling of funds and safeguarding against loss. Strong internal controls also protect employees by defining crosschecking roles for funds handling responsibilities. Departments responsible for handling checks and cash must maintain written procedures outlining each step in the funds handling process. These procedures should be reviewed at least annually to ensure that the procedures are current. For those departments that do not have adequate staff to support proper separation of duties, compensating controls must be established to ensure procedures are followed. Compensating controls are additional procedures to help reduce the risk of error or loss. Departmental procedures should also address the security of funds (i.e., locking file cabinet, safe) during the workday, and storage for overnight safekeeping. The Bursar’s Office, in consultation with Internal Audit, will conduct annual reviews of randomly selected offices to ensure the following:
Procedures Departments must record all currency transactions on the transaction log (see attached). Currency transactions include cash, check, money order, traveler’s check, cashier’s check or teller’s check. Departments must purchase multi-part pre-numbered receipt books and give receipts for all cash transactions. All receipts must include, but are not limited to, the following information: the date received, the dollar amount, a receipt number, name of the person paying for the transaction, description of the service or product, name of the department or area collecting the funds, and signature of the cash handler. Unused receipts must be maintained in a secured location. Receipts may be purchased through any office supply store. Here are some key things to keep in mind when writing your procedures:
What is the process of cash receipts?A cash receipt is a printed acknowledgement of the amount of cash received during a transaction involving the transfer of cash or cash equivalent. The original copy of the cash receipt is given to the customer, while the other copy is kept by the seller for accounting purposes.
What is the function of the cash receipts journal?A Cash receipts journal is a specialized accounting journal and it is referred to as the main entry book used in an accounting system to keep track of the sales of items when cash is received, by crediting sales and debiting cash and transactions related to receipts.
What are the key controls associated with the cash receipts business process?These controls include written policies and procedures, adequate separation of duties, cash receipt forms, timely deposits, security of funds, establishing accountability, reconciliation procedures, and supervisory reviews.
What is receipt function?The primary purposes of a receipt include providing information to customers or donors, documenting purchases and assisting with internal accounting. Both for-profit and nonprofit organizations have reasons to give receipts to patrons.
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