Administration Manual - B.E.S.T. Undertaking.

5.5.2 ADVNCE TO HEADS OF DEPARTMENTS & OUTSIDE
BODIES.
Very often amounts are required for specific purposes to be paid
directly to heads of departments or to outside bodies in which case the
personal account of the head of department or of the outside parties is
debited. This amount is then liquidated by Journal Entry on the basis
of documents produced to the satisfaction of Audit.
5.5.2.1. TYPES OF ADVANCES :-
Advance payments are made to the various heads of departments and
to outside parties. There are three types of advances viz :-
a) Permanent;
5.5.2.1.1 PERMANENT ADVANCES :
b) Temporary and
c) Deposits – these are treated as
advances.
These advances are made on permanent basis to heads of departments
for certain outside parties to meet expenditure without frequent
demands being made on the Undertaking and to obviate frequent
preparation of vouchers and drawal of cheques. On the basis of
expenditure this advance, on depletion, is periodically recouped by
voucher supported by cash memos etc.
5.5.2.1.2 TEMPORARY ADVANCES :
Temporary Advances are made to heads of departments and outside
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bodies to meet specific expenditure of a purely temporary nature.