Accounting Vouchers/ Source Documents
Vouchers are proof of business transactions. Since every transaction affects the financial status of the business, each transaction is recorded in the books of accounts which provide all the required information. Therefore, it is necessary that each transaction shall be authorized and accurately recorded. To ensure and review this at any stage, there must be documentary evidence available for each transaction.
Sales Invoice (Sales Voucher)
Sales Invoices are the most common type of vouchers that almost everyone has seen in present times. Whenever goods are sold, an invoice is provided by the supplier to its customers. Invoices are prepared on preprinted performa and generally contain Supplier Name and contact information, description of goods/service, rates, and total amount including any taxes. Some invoices also have terms and conditions printed on them. The invoice is also signed and stamped by the person authorized to make sales. Sales invoices are given to external customers, however, few copies are also retained within the business for internal use as well.
Purchase Voucher (Bill/ Invoice)
A Sales invoice is a voucher to document sales made out of business, similarly, when a business makes any purchases or incurs an expense, it prepares a voucher containing all necessary details of the transaction including any credit terms. Although Purchase vouchers are made for internal use, some businesses may issue purchase bills or Goods Received Note (GRN) to suppliers, so they can claim for their payment later if the purchase was made on credit.
Payment Voucher
A payment voucher, usually a pre-printed standard form, is a documentary record of payment. When an expense is paid, a bill is usually prepared by the person or organization receiving the payment to record the full details of the claim. From the bill, the Accounts Department prepares a voucher for every payment, whether it is for the goods purchased, for the employee’s salary, for services, or for the acquisition of any other asset.
Receipt Voucher
A receipt voucher is a document prepared against each receipt (cash/ Bank). It is also in a pre-printed standard format. This document shows that a certain amount of money was received from a person or organization and contains information about the purpose against which the money was received. It is signed by a responsible employee, authorized by the management to receive the money.
Transfer Voucher
Transfer vouchers are used to record business internal transactions. Internal transactions are those events happening within the business. Examples are material issued from stores to the production department, depreciation charged on vehicles, cash disbursed to factory cash against petty cash imprest systems, etc.
These are a few examples of vouchers, generally used within businesses. However, based on internal control mechanisms, large and well-established businesses with dispersed locations may use various other types of vouchers like Goods Received Note, delivery orders, Purchase Orders and dispatch orders, etc.
