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CHAPTE R 6 The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures 269

FI G U R E
6-3 JOB TICKET

2154 14P10 Gear 5100 14 1 VRN 400
PART NO.
50 50 DEPT NO. EMPLOYEE NO. MACH. NO. PIECES FINISHED REORDER OR NOT
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
25 25
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
JOB TICKET STOP 25 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4

START
6 5 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6
MAY 25 11.0 STOP
MAY 25 10.0 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7
START
8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
SUPERVISOR DATE
Donna Brown 5/30/09 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9

3. Prepares employee paychecks (Figure 6-7).
4. Sends the paychecks to the distribute paycheck function.
5. Files the time cards, personnel action form, and copy of the payroll register (not shown).

Distribute Paycheck
A form of payroll fraud involves submitting time cards for nonexistent employees. To prevent this, many
companies use a paymaster to distribute the paychecks to employees. This individual is independent of
the payroll process—not involved in payroll authorization or preparation tasks. If a valid employee does
not claim a paycheck, the paymaster returns the check to payroll. The reason the check went unclaimed
can then be investigated.

Prepare Accounts Payable
The accounts payable (AP) clerk reviews the payroll register for correctness and prepares copies of a cash
disbursement voucher for the amount of the payroll. The clerk records the voucher in the voucher register
and submits the voucher packet (voucher and payroll register) to cash disbursements. A copy of the dis-
bursement voucher is sent to the general ledger function.

Prepare Cash Disbursement
Upon receipt of the voucher packet, the cash disbursements function prepares a single check for the entire
amount of the payroll and deposits it in the payroll imprest account. The employee paychecks are drawn
on this account, which is used only for payroll. Funds must be transferred from the general cash account
to this imprest account before the paychecks can be cashed. The clerk sends a copy of the check along
with the disbursement voucher and the payroll register to the AP department, where they are filed (not
shown). Finally, a journal voucher is prepared and sent to the general ledger function.