Cash disbursements schedule

Cash disbursements schedule: the supporting budget schedule that times budgeted purchases and operating expenses into the months cash actually leaves, applying supplier payment terms and excluding non-cash charges like depreciation.

ByHoang TruongUpdated July 11, 2026

See it move

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April's cash disbursements combine 50% of March's €40,000 purchases, €20,000, with 50% of April's own €55,000 purchases, €27,500, for €47,500 of purchase payments. Adding €12,000 of cash operating expenses — April's €15,000 accrual figure minus €3,000 of non-cash depreciation — brings total April disbursements to €59,500.

Where it fits

SubjectManagerial AccountingCoreTopicBudgeting & the Master BudgetCore

The formula

LaTeX

D_t = p_1 P_t + p_2 P_{t-1} + E_t

Variables

$D_{t}$: Cash disbursed in month t (€)
$p_{1}$: Payment rate in month of purchase (%)
$P_{t}$: Purchases in month t (€)
$p_{2}$: Payment rate in the month following purchase (%)
$P_{t - 1}$: Purchases in the prior month (€)
$E_{t}$: Cash operating expenses paid in month t (€)

Gives the cash actually paid out in a month for purchases made that month and the month before, plus that month's cash operating expenses net of non-cash charges such as depreciation.

Check yourself

PracticeCORE

A distributor budgets purchases of €70,000 in May and €90,000 in June. Suppliers are paid 40% in the month of purchase and 60% the month after. June's accrual-based operating expenses total €20,000, of which €5,000 is depreciation. What are the firm's total budgeted cash disbursements for June?

Select an answer to check your understanding.