The Trainee Learns More

Working hours are over.. Behind is the Bottling Area

The Trainee Learns More

For weeks of internship, I was tasked in filing provisional receipts (contains details of checks received), cash disbursement journals, purchase journals with attachments (materials and services requisition form, purchase order, receiving report) and photocopying checks to be released together with the creditor’s copy of expanded withholding tax. I wanted to know the purpose of what I am doing so I asked my supervisor about it.

Daily Cash Position Report (DCPR)

My supervisor has to prepare the daily cash position report to monitor the daily cash position of the company. The report indicates the cash inflows comprising of items such as fund transfer, official receipts, and interest on time deposits and cash outflows consisting of money market placement and debit memo, and other adjustments. Basically, DCPR includes items which are reconcilable with the bank.

In determining the total cash inflow, my supervisor has to determine the checks already cleared by looking at the passbook. Next, she will compare what is seen in the passbook and in the provisional receipts and see if they reconcile. Provisional receipts state the due date of the check so my supervisor will have an idea on the number and the amount of checks that will accrue on PEPI’s account.

Finding out total cash outflows can be done by checking checks released for payment and by asking the bank for any debit memo.

Daily Cash Position Report  Format 

Projected Cash Flows

The treasury through the treasury officer (my supervisor) is required to prepare actual cash outflow and 3-month projected cash flows to be submitted to the Chief Financial Officer.

Ideally, projected cash flows are based on estimated budgets submitted by each section or department of the company. However if this is not applicable, what my supervisor does is to base the projected cash inflows on the trend of collection of trade receivables (averaging). She noted that this is not advisable.

To continue, in estimating cash outflows my supervisor refers to the Materials and Services Requisition form for possible expenses. On the other hand, she looks at the Purchase Orders for actual expenses. Furthermore, she also asks the accounting section for progress billings on on-going projects to be included in the total outflow estimation.

Gallery

Inside the Treasury Office

The pantry