What Is Disbursement?
The act of paying out funds, typically from a designated account or fund.
Detailed Explanation
In invoicing, disbursement refers to releasing payment to a vendor after approval. It may also describe pass-through payments made on a client's behalf.
Example
The AP team schedules weekly disbursements every Friday for all approved invoices.
Why It Matters
Controlled disbursement timing optimizes cash management and vendor relationships.
Related Resources
Related Payment Terms Terms
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