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Cash Disbursement Flow, SOP - surfol - 07-01-2011

Hello guys,

I learned that the flow for purchasing is as follows
Purchase Order > Goods Receipt > Invoice Receipt > Issue Payment

My question lies in the 'Issue Payment' Stage.
In the 'Issue Payment' stage, let's say the Finance Department chooses Invoice A100 to pay and enter in the system that the company has paid Invoice A100.

My question is, do they wait until the actual payment has been made (cash/check has been disbursed) before they enter in the system that Invoice A100 has been paid?

If yes, how exactly is the flow/SOP for this? How or what is the SOP for the cash disbursement? Someone else must have handled the cash right? And proper authorization must be made before cash is disbursed by the Finance Department ? I mean they can't just disburse cash and also update the system, can they? Are there any forms that must be printed and then signed, before the company can disburse the money to pay the Invoice?

I'm totally lost in this stage. So can anyone tell me the flow for this sstage?