What Is a Voucher?
Let me explain what a voucher really is. It's a document that your company's accounts payable department uses to collect and organize all the supporting paperwork needed to approve paying off a liability. Governments might issue vouchers you can redeem for programs like school choice, housing, or social welfare. A voucher can also mean something like a coupon or ticket you exchange for goods or services, which you see a lot in hospitality—think airlines, hotels, or restaurants handing out vouchers for flights, rooms, or meals.
Key Takeaways
Here's what you need to grasp: A voucher is that document in accounts payable providing backup for an invoice. It includes things like the supplier's invoice, amount owed, due date, general ledger accounts, and shipping receipts. You total up all outstanding vouchers and record that sum as accounts payable on the balance sheet. Remember, vouchers aren't just for businesses; governments and private companies use them, redeemable for various goods or services.
Understanding Vouchers
Think of a voucher as your essential backup document. It's critical because it acts as an internal accounting control, making sure every payment gets proper authorization and that the goods or services you bought actually arrived. Throughout an accounting period, your company racks up short-term obligations to suppliers and vendors—maybe buying inventory or raw materials on credit, with payment due in 30, 60, or 90 days. The voucher form pulls together all supporting documents detailing the money owed and any payments made to a supplier for an outstanding payable, and you record it all in the voucher register.
Requirements for a Voucher
You should know that vouchers often come with expiration dates, plus terms, conditions, and restrictions—make sure you understand them to redeem successfully. Supporting documents in a voucher typically cover the supplier's invoice, the vendor's name for payment, payment terms including amount owed, due date, and any early payment discounts, your company's purchase order, a receipt proving goods were received, general ledger accounts for recording, signatures from authorized company reps, and proof of payment with the date once the invoice is settled.
Special Considerations
The total of all vouchers with outstanding balances goes on the balance sheet as accounts payable. Once paid, you include proof of payment and mark it as a paid voucher. These vouchers are a primary source of evidence in audits, where auditors check if financial statements are free of material errors. They confirm that purchased goods were received, supporting the existence of items in your statements, and justify cash payments to vendors while documenting the general ledger postings. Using vouchers reduces theft risks by enforcing segregation of duties—assigning tasks to different people and creating a paper trail for auditors to verify proper separation.
Example of a Voucher
Take a local restaurant that orders meat and fish from vendors every few days. The manager fills out a purchase order for 30 pounds of meat, and the owner approves it with initials. When the shipment arrives, you compare it to the purchase order to confirm it matches. The restaurant completes a shipping receipt, which gets checked against the vendor's invoice. The voucher acts as a cover page explaining the attached documents: purchase order, shipping receipt, and invoice. You add the purchase amount to accounts payable on the balance sheet until payment. The owner reviews everything before signing the check. The voucher includes general ledger accounts—like debiting meat inventory and crediting cash. Once paid, you record the receipt and date, lowering the accounts payable balance.
Why Is a Voucher Important?
You need vouchers because they provide internal accounting control, ensuring every payment is authorized and the purchased item is received.
How Are Vouchers Helpful?
Vouchers are vital during audits as they offer evidence that goods and services in financial statements exist and corroborate cash payments to vendors. They also serve as a check-and-balance to cut down on employee theft risks.
What Is Included in a Voucher?
A voucher includes all supporting documents for money owed and payments on an outstanding payable, such as supplier invoices, supplier name, payment terms like amount, due date, and discounts, purchase order, goods receipt, general ledger accounts, authorized signatures, proof of payment, and payment date.
What Is a Section 8 Housing Voucher?
The Housing Choice Voucher Program, known as Section 8, is a federal initiative helping low-income or disabled families afford private housing. You can use these vouchers for any home, not just subsidized projects or apartments.
What Is a School Voucher?
A school voucher lets eligible families choose private or charter schools, using part of state funding meant for public schools.
The Bottom Line
Companies rely on vouchers to gather info for paying liabilities, especially to vendors, organizing payments and serving as audit evidence. Other vouchers are redeemable for government programs or business customer benefits.
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