Voucher definition

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How is a Voucher Used in Accounting?

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. Consequently, this use of vouchers has fallen out of use.

Related AccountingTools Courses

Optimal Accounting for Payables

Payables Management

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 that is submitted by a supervisor to the payroll staff.

How is a Voucher Used for Redemptions?

A voucher can refer to an official document that can be redeemed for a product or service. For example, an airline may give a bumped passenger a voucher for a free meal or hotel room, while a hotel may offer a voucher to a guest for a free night at the hotel.