Definition

A voucher is basically a piece of paper that is created upon the success of any transaction between a buyer and seller. It is used to authorize a reliable payment.

A voucher is most commonly used to record or authorize a payment that is supposed to be made to a supplier upon the delivery of a liability.

A voucher usually contains the following information,

  • The identification/ reference number of a supplier
  • The amount that is paid
  • The paper date on which payment is made
  • The account that is charged to record the liability
  • In case of early payment, a discount is usually applicable, the voucher records this too
  • An approval signature or stamp

Example of Voucher

Supplier information is usually recorded into a packet that is known as a voucher packet and it contains all information about the transactions concerning a liability.

A basic voucher is included along with the supplier invoice, evidence of receipt, and purchase order.

Suppliers and liabilities are often difficult to manage, and this packet is essential for keeping documents about liability in one place, and hence making it easier to verify and audit transactions that are to be paid out.

Why is a voucher needed?

A voucher is a verifiable and reliable piece of paper that authorizes payment to a vendor or supplier for business.

All vouchers issued are totaled to the accounts payable and they accumulate to the amount that is supposed to be paid by the business after a period when the liability is due.

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