Cash Disbursements

CEF Core categorizes disbursements by purpose. Each type follows a specific GL posting pattern and may trigger approval workflows based on amount thresholds:

Post a disbursement via POST /api/v1/cash/transactions. The amount is always a positive number -- the system determines the direction from the transaction_type field. Requires the ADMIN, TREASURY, or SYSTEM_ADMIN role.

POST /api/v1/cash/transactions
Content-Type: application/json
x-idempotency-key: disb-loan-2026-03-15-001

{
  "account_id": "uuid-of-operating-checking",
  "transaction_date": "2026-03-15",
  "transaction_type": "WITHDRAWAL",
  "amount": 250000.00,
  "description": "Loan funding - First Baptist Church building project",
  "reference_number": "WIRE-8834"
}

Large disbursements are subject to the maker-checker approval workflow, which enforces the four-eyes principle for financial transactions:

When a disbursement exceeds the auto-approval threshold, it enters the approval queue managed by the Approvals module (/api/v1/approvals). The scheduled executeApprovedRequests job processes approved disbursements every 15 minutes, and sendApprovalNotifications alerts approvers of pending items every 30 minutes.

Transaction limits are enforced by the Limits module (/api/v1/limits), which tracks per-user daily totals. The dailyLimitReset job resets counters at midnight UTC.

Disbursements can be issued via three payment methods, selected based on urgency, amount, and recipient preference:

• CHECKPhysical checks printed and mailed. Use for operating expenses and smaller payments. Include the check number in the reference_number field for reconciliation matching. Outstanding checks appear on the bank reconciliation until cleared.
• ACHElectronic transfers via the Automated Clearing House network. Typical for recurring interest payments to investors and escrow disbursements. Settlement is typically 1-2 business days.
• WIRESame-day wire transfers for time-sensitive, high-value disbursements such as loan fundings. Include the wire confirmation number in reference_number. Wire transfers typically require maker-checker approval regardless of amount.

Escrow accounts are managed by a separate Escrow module at /api/v1/escrow. When an escrow payment is due (property taxes, insurance premiums, or maintenance reserves), the escrow service creates the disbursement in the cash module automatically:

1. Escrow analysis: The system calculates the required payment based on the escrow account balance and the upcoming due date.
2. Disbursement creation: A WITHDRAWAL transaction is posted to the operating checking account.
3. GL posting: DR Escrow Payable / CR Cash (1010) is recorded in the general ledger.
4. Payment issuance: The check or ACH payment is sent to the taxing authority, insurance company, or maintenance vendor.

Every disbursement generates a double-entry journal entry. The credit always goes to the source cash account:

The GL journal entry ID is linked to the cash transaction via the gl_je_id column, enabling full traceability from the disbursement back to the general ledger.

• ✓Always include reference numbers: Check numbers, wire confirmations, and ACH trace numbers make bank reconciliation significantly easier.
• ✓Use descriptive text: Include the borrower or vendor name and purpose in the description field for audit trail clarity.
• ✓Verify available balance first: Check the cash position via GET /api/v1/cash/position before processing large disbursements to ensure sufficient funds.
• ✓Respect the approval workflow: Do not split a large disbursement into smaller amounts to circumvent maker-checker thresholds. This is flagged by the fraud detection module.
• ✓Reconcile promptly: Match disbursements to bank statement entries within 5 business days to maintain accurate outstanding item tracking.