Voucher System
🎯 Learning Objectives
- Understand the purpose and components of a voucher system
- Identify the documents required in a voucher system
- Explain the approval process for cash disbursements
- Describe how a voucher system provides internal control
- Apply voucher system procedures to business transactions
- Understand the relationship between vouchers and the purchases journal
📚 Background & Principles
A voucher system is a set of procedures and documents used to control cash disbursements and ensure that payments are made only for authorized transactions. It creates a paper trail that verifies each payment is proper before checks are issued.
🔑 Key Concepts
A document authorizing a cash payment, containing all supporting documentation for the transaction.
A request to the purchasing department to order needed goods or services.
A formal document sent to a vendor authorizing a purchase at specified terms.
A document confirming that goods were received and inspecting their condition and quantity.
A vendor's bill requesting payment, showing amounts owed for goods or services.
A journal used to record all approved vouchers before payment.
🔍 Deep Dive
Explore voucher systems at different levels of depth:
🟢 Foundational Level
Understanding the voucher approval process.
The Permission Slip System
Before you pay ANYONE, you need proof.
1. Request
Purchase Requisition
2. Order
Purchase Order
3. Receipt
Receiving Report
4. VOUCHER
Staple all together
The Golden Rule
If the documents don't match, the Treasurer doesn't sign the check.
🟡 Standard Level
Understanding document matching and approval.
The Document Matching Process
Three-Way Match:
| Document | What It Verifies | Key Fields to Match |
|---|---|---|
| Purchase Order | What was ordered | Item, quantity, price, vendor |
| Receiving Report | What was received | Item, quantity (compare to PO) |
| Vendor Invoice | What we're being charged | Price, quantity, terms (compare to PO) |
Internal Control Checklist
- ✅ Does the voucher match the invoice?
- ✅ Does the invoice match the receiving report?
- ✅ Is there a valid Purchase Order?
- ✅ Is the math correct on the invoice?
- ✅ Are approvals documented?
🔴 Advanced Level
Understanding voucher system accounting and automation.
Voucher Recording
When a voucher is approved, it is recorded in the Voucher Register:
| Date | Vendor | Voucher # | Accounts Payable Cr. | Purchases/Expenses Dr. |
|---|---|---|---|---|
| Oct 15 | Office Supplies Inc. | 101 | $500 | $500 |
Benefits of Voucher Systems
| Benefit | How It Helps |
|---|---|
| Prevention of duplicate payments | Each voucher is numbered and tracked |
| Authorization control | Payments require documented approval |
| Cash management | Payment timing can be optimized |
| Audit trail | Complete documentation for every payment |
🕵️♀️ Interactive: Voucher Detective
You are the Accounts Payable Clerk. Review the Invoice on your desk and find the matching documents from the file cabinet. Only approve if everything matches!
Your Desk
INVOICE #998
Vendor: Acme Corp
Item: 50 Widgets
Price: $10.00 ea
Total: $500.00
File Cabinet
🚫 Common Misconceptions & Professional Tips
✅ Reality: A voucher includes the invoice PLUS all supporting documents (PO, receiving report). It's a complete file, not just an approval stamp.
✅ Reality: All cash disbursements should be documented. Petty cash has its own system; larger purchases need full voucher documentation.
✅ Reality: Always compare invoice to RECEIVING REPORT too. What if the vendor shipped only 50 widgets but billed for 100?
🧠 Memory Aids & Quick Reference
REQUEST → ORDER → RECEIVE → VOUCHER → PAY
Three-Way Match: PO = Receiving Report = Invoice
No Match = No Pay!
"I need this" - internal request to purchasing
"Ordering this" - sent to vendor
"Got this" - confirmation of delivery
"Pay for this" - approval document
📖 Glossary
A set of procedures and documents used to control cash disbursements and ensure authorized payments.
A document authorizing payment, containing all supporting documentation for a transaction.
A request to the purchasing department to order needed goods or services.
A formal document authorizing a vendor to supply goods at specified terms.
A document confirming goods were received, inspecting quantity and condition.
Comparing the purchase order, receiving report, and vendor invoice to verify agreement before payment.
A journal used to record all approved vouchers before payment is made.
The process of verifying that all documents are correct and match before authorizing payment.
🎯 Knowledge Check: Voucher System
Test your understanding of voucher systems:
Question 1: What is the "three-way match" in a voucher system?
Question 2: What document authorizes a vendor to ship goods?
Question 3: Before paying a vendor, what documents should be matched?
Question 4: What does a voucher represent?
Question 5: If the invoice quantity doesn't match the receiving report, what should you do?