What Is Voucher in Accounting?

Mon Oct 25, 2021

We've all gathered bills, invoices, receipts, salary and wage sheets, and other paperwork. However, were you aware that these are all referred to as vouchers in accounting?

A voucher is simply an account payable backup document. If you want to improve your accounting knowledge, you should be aware of vouchers. You don't have to be intimidated by their varying levels of importance in the profession.

This article will provide you with all the information you need to know about vouchers.

Table of Contents

What is Accounting?

A voucher is a record used by an organization's accounts payable department to collect and file all supporting papers. These are which are required to authorize the payment of an obligation.

Governments may also offer vouchers that may be redeemed for a variety of programs. These include education reforms, housing, or social welfare projects. A voucher can also refer to a record, such as a ticket or a coupon, that can be redeemed for an item or service.

All outstanding voucher amounts are totaled, and the total is reported as accounts payable on the balance sheet. The voucher and the required documentation are entered into the voucher registry.

Now that you understand what a voucher is, let us look at its criteria.

A Voucher's Requirements

A voucher may include the following supporting documents:

  • The supplier's invoice
  • Name of the vendor or provider to be paid
  • Payment terms include the amount owing, the due date, and any reductions offered by the provider for paying the invoice early.
  • The purchase order of the firm
  • Receipt proving that the firm got items from the supplier
  • Accounts in the general ledger that will be utilized for accounting purposes
  • Signatures from authorized corporate officials for the purchase and payment
  • Once the invoice to the vendor has been paid, provide proof of payment and the date.

Vouchers frequently have expiration dates as well as different terms, circumstances, and exclusions. Make sure you understand these to effectively redeem them.

The Voucher Example

Every so often days, a small restaurant purchases meat and seafood from its vendors. The diner manager creates a purchase order for 20 pounds of meats, and the owner signs it to authorize the delivery.

When the package arrives, the products are checked to the purchase order to confirm that the cargo is exactly what was purchased.

To record the procedure, the restaurant creates a shipping receipt, which is then compared to the vendor's invoice.

The purchase request, shipment receipt, and invoice are all included in the voucher, which is a cover sheet that describes the associated papers.

The purchase price is applied to the balance sheet and noted as accounts payable until paid. Before signing a check, the owner goes over all the voucher data.

The general ledger accounts used to record transactions are also included in the voucher. To register the payment, the diner, for instance, can charge the meat amount of inventory and pay the cash account.

The date and receipt of payment are documented to demonstrate that the voucher has been received. Accounts payable will display the reduced balance owing to the paid invoice, providing no further payables are issued.

Special Factors Concerning Vouchers

On the balance sheet, the actual sum of all vouchers with outstanding sums owed is represented as accounts payable.

When a voucher is paid, the evidence of payment is contained in the coupon, and it is marked as a paid voucher.

When an audit is done, the company's vouchers are a critical source of proof. An auditor goes through a series of procedures to evaluate whether the financial statements are free of substantial misrepresentation.

Vouchers prove that the products bought were finally received, supporting the auditor's claim that the products and services shown on the financial statements exist.

Vouchers also serve to validate the firm's cash payments to vendors. This is to identify the general ledger accounts that were utilized to record the transaction.

Using a voucher system also limits the possibility of workers working together to steal corporate assets. To avoid employee theft, businesses use a division of responsibilities, which implies that important activities are allocated to separate persons inside the firm.

The voucher shows that several employees do the activities and establishes a paper trail so that an auditor may prove that the jobs were appropriately separated.

The Components in a Voucher

This is most often seen in a manual payment method as part of the control mechanism. A voucher often includes the following information:

  • Identification number for the supplier
  • The sum owed
  • The date on which payment will be made
  • The accounts payable that will be used to record the liability
  • Any appropriate criteria for early payment discounts
  • The signature or mark of approval

The Voucher Varieties

In accounting, there are several sorts of vouchers. They are as follows:

  • Voucher for debit or payment
  • Voucher for Credit or Receipt
  • Voucher for assistance
  • Voucher for non-cash or transfer (Journal voucher)

The Types of Vouchers in Accounting

Since you now understand the concept of vouchers in accounting, let us shed some light on the many sorts of vouchers.

Voucher for Receipt

This voucher type is used to record cash or bank receipts. Receipt vouchers are classified into two types: cash receipt vouchers and bank receipt vouchers.

The data on the receipt of cash in hand will be included on a cash receipt voucher. The bank confirmation voucher, on the other hand, indicates the receipt of a check or DD (demand draft).

This signifies that the money was not received in cash, but rather by bank transfers, checks, or DD.

Voucher for Payment

A payment voucher differs from a receipt voucher. The receipt voucher represents the receiving of funds. A payment voucher, on the other hand, describes the outflow of monies.

Payment vouchers are primarily used to document any cash or check payment. Payment vouchers are classified into two types: cash payment vouchers and bank payment vouchers.

A cash payment voucher specifies all cash payments, whereas the latter denotes payments made by check or demand draught.

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Non-cash, Transfer, or Journal Vouchers

For all non-cash activities, a non-cash or transfer voucher, also known as a journal voucher, is utilized.

These are being used as documented evidence. For example, if products are sold on credit, the cash or bank account is unaffected.

In such circumstances, the voucher will be credited to the debtor to whom the products were sold on credit. And the credit account sales will be credited.

Voucher Assistance

A supporting voucher is written documentation of previous transactions.

For instance, you may attach the spending bill to the original voucher to back up the primary voucher.

Fuel bills, which are tied to transportation vouchers, are a nice example of such a supporting voucher.

Benefits of Voucher in Accounting

The following are some of the advantages of keeping vouchers:

  • Vouchers can help you maintain greater control over your payables process.
  • Many bills can be paid at once, minimizing the number of cheques required.
  • It can be pre-numbered, which makes the payables audit trail easier to follow.
  • To improve efficiency and make planning easier, invoice approval and payment are separated.
  • The cashier is responsible for collecting invoices and reporting to the treasurer.

How to Make a Bookkeeping Voucher

Accounting vouchers must be prepared for a corporation by an accountant. The source document is used by the accountant to produce the vouchers. The source documents are the documents associated with a commercial transaction.

Cash memos, bills, bank deposit slips, receipts, checkbook counterfoils, challans, and other information proving the presence of a transaction in an organization are examples of such papers. Just about all accounting vouchers will include the same information.

The following information is often included on a voucher:

  • Voucher serial number
  • Voucher Debit and Credit Types and Dates Amount in both figures and text in the column
  • Column Totals
  • Column of Specifics (where the brief description of the transaction is recorded)
  • Accountant's signature space
  • Manager's or authorized person's signature
  • Receivers' signatures (for bank payment voucher or cash payment voucher)

It is critical to properly create the voucher since any error may bring a lot of headaches for business owners.

As a result, while producing a voucher, an accountant must follow the methods outlined below.

  • All supporting documentation must be thoroughly checked (date, amount, nature of transactions, signature)
  • An authorized person must approve all supporting documentation.
  • The accountant should choose the sort of voucher that will be utilized to prepare the transaction.
  • The accountant must ensure that the debit and credit sides of the voucher are balanced.

Furthermore, an accountant must assign the right account head to avoid any errors in documenting transactions.


What are the different kinds of accounting vouchers?

In accounting, there are several sorts of vouchers.

They are as follows:

  • Debit or payment voucher.
  • Voucher for credit or receipt.
  • Voucher for assistance.
  • Voucher for non-cash or transfer (Journal voucher)

With an example, explain what a voucher is in accounting?

A voucher aids in the documenting of costs or liabilities, as well as their payment. They are also known as source documents since they aid in determining the origin of a transaction.

Bill receipts, cash memos, pay-in-slips, cheques, an invoice, and a debit or credit note are all instances of vouchers.

What exactly are payment vouchers?

Payment Vouchers are used to keep track of payments owing to vendors and to keep track of payment history.

Expenses paid to Vendors on Clients' behalf (cost advance) can be recovered using Expense Distributions established on Payment Vouchers.

What are the features of a voucher?

A coupon usually includes the following information:

  • The supplier's identifying number.
  • The sum that must be paid.
  • The day on which payment is due.
  • The accounts that will be charged to record the responsibility.
  • Terms of any relevant early payment discount.
  • A signature or seal of approval.

Summing Up

Every business employs an accountant to produce such vouchers for accounting purposes. If you were wondering what, why, where, and how vouchers in accounting are utilized, we hope this article was helpful.

Why do you need it? Accounting vouchers are important for maintaining more control over the payment process.

If you think we missed something that adds value, go ahead and add it in the comments below!


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