A voucher is an internal document within a company that is issued by the accounts payable (AP) department. It is a small printed piece of paper that serves to attest to the payment of money. It is a small printed piece of paper that entitles the holder to a discount, or that may be exchanged for goods or services. It is essentially the backup documents for accounts payable. Accounts payable are the short-term bills owed by companies to vendors and suppliers.
‘Voucher is a form authorizing a disbursement of cash or a credit against a purchase or expense to be made in the future. It is essentially the backup documents for accounts payable.”
A voucher is a document used by a company’s accounts payable department to gather and file all of the supporting documents needed to approve the payment of a liability. It is a form that includes all of the supporting documents showing the money owed and any payments paid to a supplier or vendor for an outstanding payable. It is a backup document needed to initiate the procedure of collecting and filing all other documents required to settle liability.
The voucher is important because it’s an internal accounting control mechanism that ensures that every payment is properly authorized and that the goods or services purchased are actually received. It is a form authorizing a disbursement of cash or a credit against a purchase or expense to be made in the future. It can be seen as a “memorandum” of the liabilities of the company, and it is used to authorize a payment.
An important feature of the internal accounting of a company is the control mechanism. Some of the supporting documents in a voucher can include:
- Invoice from the supplier
- Vendor or supplier name to be paid
- Terms for payment such as the amount owed, the due date, etc.
- The company’s purchase order
- Receipt showing that goods were received by the company from the supplier
- The general ledger accounts to be used for accounting purposes
- Signatures from authorized representatives at the company for the purchase and payment.
Once the voucher is issued, it means that the invoice’s been checked, and it’s been confirmed that it needs to be paid. The voucher authorizes the payment of the invoice in one lump-sum that will be written on the balance sheet.