What is a Voucher?
A voucher is a written document that supports accounting transactions and ensures the accuracy of financial records. It serves as proof of payment or receipt in accounting. Examples include bills, invoices, receipts, salary sheets, pay-in-slips, cheque counterfoils, and trust deeds.
Vouchers can also be redeemable transaction bonds with a specific monetary value that can be used for designated purposes, such as lodging, transportation, and food.
Accounting Voucher
A voucher is generated upon receiving an invoice from a supplier. Once the payment is made, the voucher is marked as "Paid" and stored with supporting documents.
- A “payment run” process generates payments based on unpaid vouchers in accounts payable.
- In accounts receivable, a voucher helps in adjusting accounts.
- In the general ledger, a voucher is a journal voucher for adjusting accounts.
Components of a Voucher
A voucher generally includes the following details:
- Supplier Identification Number
- Amount Payable
- Payment Date
- Accounts Payable Records
- Discount Terms (if applicable)
- Approval Signature or Stamp
Types of Vouchers
- Debit or Payment Voucher: Used to record outflows of cash or bank payments.
- Credit or Receipt Voucher: Used to record inflows of cash received.
- Supporting Voucher: Attached are the main vouchers to provide additional supporting details for a transaction.
- Non-Cash or Transfer Voucher (Journal Voucher): For adjustments not involving a cash transaction.
Benefits of Vouchers
- Better Control of Payables: It ensures that payment processing is accurate.
- Adequate Bulk Payments: Several invoices are paid together to reduce paperwork.
- Adequate Audit Trail: Pre-numbered vouchers enable tracking of payments.
- Separation of Invoice Approval from Payment: Separates invoice approval from payment for greater efficiency.
- Accountability and transparency: Financial records are documented properly and traceable.
Key Takeaways
Vouchers are very essential in accounting, as they make the financial records accurate, accountable, and transparent. They help businesses manage payables efficiently, reduce errors, and maintain a clear audit trail for financial compliance.
