What Is a Disbursement? A disbursement is a payment to an individual or entity from a private or public fund. It may also be a payment made on behalf of a client to a third party, money paid...
The meaning of DISBURSEMENT is the act of paying out money especially from a fund : the act of disbursing; also : funds paid out. How to use disbursement in a sentence.
A disbursement is the expenditure of cash, generally from one specific fund to another. Disbursement is an especially common word in corporations, governments, and nonprofit organizations.
In the business world, a disbursement occurs when a company makes a payout from their cash reserves or bank account. It’s important to note that disbursements are not always considered expenses because they might not impact the company’s profits and losses.
A disbursement is the actual outflow of cash, while an expense is the recognition of a cost incurred, regardless of when cash is paid. A company may record an expense before the related disbursement occurs, such as with accrued liabilities.
Disbursements are paid in cash or an equivalent method by your company during a specific period of time, like a quarter or a year. If you use the accrual method of accounting, you would report your disbursements when they occur, not when they are paid.
DISBURSEMENT definition: 1. an amount of money given for a particular purpose 2. the act of paying out money, especially…. Learn more.
What is a Disbursement? A disbursement is an act of paying out money – especially from a public or dedicated fund. It often refers to the payment made for a client to a third party, as reimbursement will be sought from the client subsequently. Disbursement leads to cash outflows.