Voucher - Definition, What is Voucher, Advantages of Voucher, and Latest News - ClearTax (2024)

Introduction

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:

• Supplier identification number
• The amount payable
• The date on which payment will be made
• The accounts payable to record the liability
• Any valid early payment discount terms
• The approval signature or stamp

Types of Vouchers

There are different types of vouchers in accounting. They are:

• Debit or Payment voucher
• Credit or Receipt voucher
• Supporting voucher
• Non-Cash or Transfer voucher (Journal voucher)

Benefits

The following are a few benefits of maintaining vouchers:

• Vouchers are useful to retain better control over the payables process.
• Many invoices can be paid at once, thereby reducing the number of cheques.
• It can be pre-numbered and simplifies the payables audit trail.
• Invoice approval is segregated from invoice payment, both for optimising productivity, making it easier to plan.
• Collection of invoices shall be made by the cashier, who shall report to the treasurer.