What do you mean by vouchers?

: a coupon issued by government to a parent or guardian to be used to fund a child's education in either a public or private school

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A voucher is an internal document describing and authorizing the payment of a liability to a supplier. It is most commonly used in a manual payment system, where it is part of the system of controls. A voucher is created following the receipt of an invoice from a supplier. It is stamped "paid" when a check or electronic payment is made to a supplier and is then archived, along with any supporting documents.

Voucher information may be assembled into a packet, where the basic voucher document is attached to the supplier invoice, evidence of receipt, and purchase order. This packet is useful for keeping related documents in one place, and makes it easier to both justify and audit payables transactions.

If vouchers are used for all payables, their totals can be aggregated to determine the total amount of accounts payable outstanding. This function is not needed in a computerized system, where the aged payables report is used instead.

Contents of a Voucher

A voucher typically contains the following information:

• The identification number of the supplier

• The amount to be paid

• The date on which payment should be made

• The accounts to be charged to record the liability

• Any applicable early payment discount terms

• An approval signature or stamp

When Not to Use a Voucher

A voucher is not created when a liability has only been accrued (which is done in the absence of a supplier invoice, and when the accrual basis of accounting is used). Also, vouchers are not used in the payroll process. In the payroll process, payments are made based on an approved timesheet or timecard.

Any written documentation supporting the entries reported in the account books, indicating the transaction's accounting accuracy, can be referred to as a voucher. For example, a bill, invoice, receipt, salary and wages sheet, pay-in-slip counterfoil, cheque book counterfoil, or trust deed.

A voucher is a redeemable form of transaction bond that is worth a particular monetary value and can only be used on specific grounds or specific goods. Examples of this include vouchers for lodging, transportation, and food.

Accounting Voucher

A voucher is created once we have received the invoice from a supplier. It has to be stamped as "paid" when a cheque or digital payment is made to a supplier and is then archived along with any supporting documents.

A mechanism called a "payment run" is performed in account payable systems to produce payments that correspond to the unpaid vouchers. The voucher can be used in accounts receivable to adjust an account. Also, the voucher can be used to adjust the accounts under general ledger, and it is called as a journal voucher.

Components of Voucher

This is most commonly found in a manual payment scheme, in which it is part of the control mechanism. A voucher usually contains the following information:

Definition: A voucher is a file or folder that companies use to store documents that are used for cash distribution authorization like checks, invoice approvals, receiving reports, invoices, purchase orders, and purchase requests.

What Does Voucher Mean?

A voucher keeps all documents that are used to support the distribution of cash. In this sense, a voucher is an internal control because it organizes all the proper source documents that required before a check can be written.

Example

Voucher files should be used for all company expenditures from inventory purchases to monthly utility bills. Let’s look at inventory purchases as an example.

When a piece of inventory is set to be ordered, the merchandising or inventory department files a purchase requisition with the purchasing department. The purchasing department places an order for the inventory and puts both the purchase requisition document and the purchase order in the voucher file.

The voucher file is sent to the shipping and receiving department, which receives the shipment, files a receiving report, and places the report in the file. The voucher is then sent to the accounting department with the invoice. After the accounting department approves the invoice, all the source documents are placed in the voucher file and sent to the cashier for payment.

As you can see, the voucher file stores every source document involved in the purchase of the inventory, so management can trace the audit trail of every inventory purchase and stop unauthorized cash disbursements.