Expenditure Cycle, Conversion Cycle and GL and Financial Reporting Cycle

Treasury
Marketing Operations Cost Accounting Human Resource Procurement Vendor Warehousing Asset Management Inventory Control Vendor Invoicing AP Control GL Department Financial Reporting Taxation Financial Planning
(Cash
(Conversion) (Conversion) (Conversion) (Payroll) (P2P) (P2P) (P2P) (Fixed Asset) (P2P) (P2P) (P2P) (GL and FR) (GL and FR) (GL and FR) and Analysis
Disbursement)

Dr Inventory/ Asset/ Prepaid/ Expense

Cr Accounts Payable (Manual) or Goods Receipt (Automated)

Products and
Technical Feasibility Financial Planning
Services
and Analysis
Computation of
-Sales Forecast
Updates Stock Updates Asset Taxes
General Ledger -Expense Forecast
What’s needed? Records Listing
-Cash Flow Projects
Product Approval
-Actuals vs Budget
Adjusting Journal Entries -Standard Cost
Review
Technical Sourcing/
Marketing Study Purchase Requisition
Requirements Bidding Fixed Assets
Inventory
Actual
GL Accountant Cost
How many? Prepares
Reconciliation
between GL and SL
Storage
Employee
Sales Forecast Production Schedule Ordering
Requirements Assets are assigned/
deployed Asset Listing

Purchas Requisition

Standard Cost Hiring Vendor/ Delivery of Goods/ Updates Inventory

Purchase Order Delivery Receipt Inventory Summary
Supplier Services SL

Dr Goods Receipt
Cr Accounts Payable (Automated)

Preparation of
Financial Planning Time-charges Vendor Invoice Updates Vendor SL Payables Summary
Actual vs Standard Check Vouchers
and Analysis
Dr AP
Cr Cash Dr Tax Expense
Cr Taxes Payable / AP

Payroll Check Voucher- Payroll Check Voucher - Vendors Authorize Check

Actual
Cost

Check Payment

Government
Employees are paid Vendors are Paid
Regulators are paid