Vouchers: Types, Benefits & Components of a Voucher Explained

The voucher is defined as a redeemable form of a transaction bond containing a particular monetary value that can be used on specific grounds, for specific goods. In other words, a voucher is any written documentation supporting or authenticating the entries made in an account book. It provides the accurate accounting value of the transaction concerned, against which it is issued. Some examples of vouchers include:

Table of Contents

Cheque book counterfoil
Receipt
Salary
Invoice
Bill
Wages slip
Pay-in-slip counterfoil, etc.

See also: All about Indian accounting standards

What is an accounting voucher?

A voucher is created, once an invoice is received from the supplier. You need to stamp it as ‘paid’ when a cheque or a digital payment is made to the supplier. This paid voucher is archived with supporting documents.

In an accounts payable system, a mechanism called ‘payment run’ is employed. This mechanism is performed to produce payments corresponding to the unpaid vouchers. The voucher can, thus, be used in accounts receivable to adjust the account or the monetary disparity happening when it was unpaid in accounts payable.

Once this is done, the vouchers can now also be adjusted under the accounts present in the general ledger. It is known as a journal voucher.

What are the multiple components of a voucher?

Components of a voucher are mostly found in a manual payment scheme. It is a part of the control mechanism. Every legitimate voucher should usually have the following information:

Amount payable
Supplier identification number
The date on which the payments will be made
Any authentic early-payment discount terms
Accounts payable to record the liability
Approval signature or stamp.

See also: what are the advantages of trial balance

Types of vouchers

According to the requirements in monetary transactions, there are different types of vouchers. These are:

Credit voucher or receipt voucher
Debit voucher or payment voucher
Supporting voucher
Non-cash or transfer voucher or ledger voucher.

What are the benefits of vouchers?

There are multiple benefits of maintaining vouchers:

Vouchers are the best and ideal documents to retain heightened control over various payable processes.
You can pay several invoices at once, reducing the number of cheques used. A voucher can be used as an authentic document that can legitimise your invoicing, without using several cheques.
Vouchers are pre-numbered, simplifying the entire procedure of payable audit.
Vouchers enable you to segregate invoice approval from invoice payment. It increases or optimises productivity and makes entire planning easier.
Vouchers ensure that the collection of invoices are made by the cashier who is responsible to report to the treasurer. The treasurer can again authenticate the invoices against the vouchers received or in-hand.

Was this article useful?

😃 (3)
😐 (0)
😔 (0)

Housing News Desk

Housing News Desk is the news desk of leading online real estate portal, Housing.com. Housing News Desk focuses on a variety of topics such as real estate laws, taxes, current news, property trends, home loans, rentals, décor, green homes, home improvement, etc. The main objective of the news desk, is to cover the real estate sector from the perspective of providing information that is useful to the end-user.

Facebook: https://www.facebook.com/housing.com/

Twitter: https://twitter.com/Housing

Email: [email protected]