Disembursement

Disembursement is a term primarily used in finance and accounting to describe the act of withdrawing funds from an account or treasury. It signifies the outflow of money, moving it from a holding place to be used for a specific purpose, such as paying for goods, services, or investments. This process is the opposite of disbursement, which typically refers to the payment itself, while disembursement focuses on the removal of the funds from the source.

In practical terms, disembursement can occur in various contexts. For example, a company might disemburse funds from its operating account to pay employee salaries or supplier invoices. An individual might disemburse money from their savings account to cover a down payment on a house or to fund a vacation. In the realm of grants and aid, disembursement refers to the release of allocated funds to the intended recipients for their projects or needs. The term implies a deliberate action to take money out, often following authorization or a predefined schedule. Tracking disembursements is crucial for maintaining financial records, budgeting, and ensuring accountability.