Get Cash Disbursement Form

A cash disbursement is a payout of funds in cash. In the payments industry, the term typically refers to a withdrawal made from an ATM or a cash back transaction. These transactions can typically only be made with debit cards, not credit, and are often subject to different rules than ordinary purchases.

A Disbursement Voucher is a form used to have a check made to pay an individual or an organization for merchandise sold or services rendered.

Most cash disbursements or cash payments are done by electronic funds transfer, ACH, check, debit card, or charge card. A common example of this is recurring expenses, for which the payment method is typically ACH or debit card.

Most cash disbursements are invoice payments. For example, when inventory is purchased, the transaction should have an invoice, along with a purchase order and a proof of merchandise receipt, before payment on the transaction is made.

The disbursement process takes the payment data and transforms it into a disbursement instrument. Disbursements liquidate the payable and generate payments to the vendor.

Cash receipts are money received from consumers for the sale of goods or services. Cash disbursements are monies paid out to individuals for the purchase of items that are needed and used by a company.

The cash disbursements cycle steps - approval, preparation, authorization - can leave your company vulnerable to fraud and theft if basic controls are not in place.

To perform a cash disbursement, an employee issues a check, pays cash, or initiates an ACH or other funds transfer. That cash (or cash equivalent) payout gets recorded in a cash disbursement journal.