Local vouchers are used to reimburse employees for expenses such as lodging, meals, transportation, and incidentals during their travel. In business, the recording of transactions takes place only when there is some documentary evidence present. These can be in the form of receipt, counterfoil, cash memo, pay-in-slips, and invoice. Based on these vouchers, the accountant passes entries in the books of accounts.

  • After making the required changes, the employee can resubmit the voucher for review.
  • Many people may consider it tedious and time-consuming to maintain a system of check vouchers, but it offers quite a few benefits.
  • The voucher goes through a review process, where it is verified and approved by the appropriate individuals within the DoD.
  • This function is not needed in a computerized system, where the aged payables report is used instead.
  • Additionally, vouchers also act as a check-and-balance tool and reduce the risk of employee theft.

Voucher is the supporting documents that accountants use as the summary to record into the accounting system. It is the primary document to prove that the transactions have occurred, it is used to record payment, receipt, and journal adjustment. The voucher contains the reference number which allows to trace back and forth between accounting record and supporting documents. By law, public companies are subject to an audit procedure that verifies the veracity of the information in the financial statements. Thanks to the voucher, the auditor in charge can easily verify that all the goods purchased, or the services paid, were actually received by the company. Thus, the vouchers are used to justify and document the cash payments of the company.

Importance of Vouchers

They are presented on a full sheet of paper with the check on the top and the vouchers on a removable section below. Form 1040-V is used by taxpayers to send payments to the IRS via check or money order. The need for filing Form 1040-V has decreased as taxpayers can now send payments electronically. If you choose to use Form 1040-V, what is a billing cycle ensure that it is filled out correctly to avoid any issues with your tax returns. An invoice received from a vendor is a billing for goods or services that it had provided. The vendor’s invoice will include the quantities of the items provided, brief descriptions, unit prices, amount due, credit terms, where to remit payment, etc.

The Defense Travel System (DTS) provides a tracking feature that allows employees to monitor the status of their local vouchers. Through DTS, employees can access their voucher history and view the current status of each voucher submitted. No, local vouchers are typically submitted after the completion of authorized travel. Expenses incurred during future trips should be claimed in separate local vouchers once the travel has been completed. Credit or Receipt Voucher is the supporting document that shows the company has received cash from their customer, bank, or other parties. This voucher can be used for cash receipt from the sale, share capital injection, Interest earns from bank, cash receipt from the debtor, and cash from other sources.

What Is a Payment Voucher?

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. Any written documentation supporting the entries reported in the account books, indicating the transaction’s accounting accuracy, can be referred to as a voucher. For example, a bill, invoice, receipt, salary and wages sheet, pay-in-slip counterfoil, cheque book counterfoil, or trust deed.

In the payroll process, payments are made based on an approved timesheet or timecard. Voucher checks are commonly used by a company’s payroll department and are referred to as payroll checks. The voucher will contain a voucher number, name of the payee, date, amount (gross and net if any deductions), signatures, and any memo notes that need to be recorded. For payroll, even though direct deposit is increasingly becoming the norm for paying employees, having a paper trail back-up is a common practice.

Using a voucher system also reduces the risk of employees colluding to steal company assets. Businesses employ segregation of duties to prevent employee theft, which means that critical tasks are assigned to different people within the organization. The voucher documents that the tasks are performed by multiple people and creates a paper trail so that an auditor can confirm that the duties were properly segregated. You can configure the ledger to display voucher numbering either in the main transaction reference field, or as a second ledger reference, retaining the transaction reference for other purposes. The voucher number itself can be used as a selection criterion for queries, batch processes and reports.

It reduces the number of errors, which, in turn, lessens the need for costly review and audit. Therefore, adopting a check voucher system makes review and audit less necessary. The process of bookkeeping is simplified when check vouchers are used as documents are readily available, intact, and valid.


For example, you may get two invoices with identical invoice numbers from two different suppliers. If you assign each a voucher number, you can locate each invoice based on its unique voucher number. Most video game special editions come with a voucher for exclusive content in-game. Also, pre-ordering games at certain shops may entitle the purchaser to vouchers to content only available if you pre-order at that store.

So, these two words are opposite sides of the same coin and one should not get confused between the two. In this written material, we are going to explore the differences between voucher and invoice. A voucher may also refer to a document, such as a coupon or ticket, that is redeemable for some good or service.

A business can need to buy raw materials or inventories from suppliers to utilize in the production of the firm’s products. The suppliers essentially provide the business an extension of credit, allowing for speedy payment, such as in 30, 60, or 90 days. Payment vouchers are used by account payable systems to produce a payment that matches outstanding vouchers. A correction to an account in accounts receivable may be made using the voucher.

Once the voucher has been paid, the proof of payment is included in the voucher and recorded as a paid voucher. 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. They are also called source documents as they help in identifying the source of a transaction.

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You can define different journal classes to classify journals
according to their business function, for example, receipts, payments,
transfers, and so on. A payment voucher is especially useful in situations where payments are not due immediately. Suppliers often grant companies credit extensions so that payments can be made in the near future, e.g., 30, 60 or 90 days. Voucher checks that are used in computerized accounting systems have three parts that together fit on standard-sized sheets of paper for ease of use in printers. The checks are usually business sized—longer than a standard check but with the same width. One part is the check and the other two parts are the vouchers for the payee and issuer for their respective records.

There are certain limitations on the types of expenses that can be claimed in a local voucher. Expenses must be directly related to authorized travel and incurred for official business purposes. Personal expenses or expenses unrelated to the travel are typically not reimbursable. Non-Cash voucher is the voucher for other transactions which is not involving with cash flow, it is also known as the journal vouchers. Some transactions such as, deprecation, credit sale, credit purchase, adjustment, and reversing entries.

You should also include a daytime phone number and your SSN on the payment. If filing a joint return, write the SSN listed first on your Form 1040, 1040-SR, or 1040-NR. In other words, a voucher is a supporting document for an invoice received by the company.

Definition of a Voucher

Submitting local vouchers electronically offers several advantages, including faster processing times, reduced paper waste, and greater convenience for employees. It also allows for easier tracking and auditing of travel expenses within the DTS system. To submit a local voucher electronically, employees must log in to the DTS system and access the voucher module. They can then input all the necessary information, attach scanned copies of receipts, and submit the voucher for review. The voucher will go through an automated validation process to check for any errors or discrepancies. Once approved, the reimbursement will be processed, and the employee will receive their payment through the designated method, such as direct deposit.

Form 1040 V: Payment Voucher: Definition and IRS Filing Rules

A few examples of vouchers include bill receipts, cash memos, pay-in-slips, checks, an invoice, a debit or credit note. A voucher is often a prenumbered form used in the accounts payable department to standardize and enhance a company’s internal control over payments to its vendors and service providers. Essentially, a company orders inventory from a vendor and the company manager fills out a purchase order. When the shipment is received, the contents of the shipped order is compared to the purchase order to ensure it matches.