Question

A voucher system is a traditional way that business can control disbursements. This system involves a series of steps using specific forms for the approval of invoices and the issuing of checks. Describe this process and name the necessary forms, and who prepares each.

Answer 1

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. A voucher is usually prepared after a vendor's invoice has been matched with the company's purchase order and receiving report.A voucher is prepared every time the company makes a payment. Hence, vouchers are prepared for other disbursement transactions like cash purchases, payment of payroll, replenishment of petty cash and other funds, payment of debts and other obligations, and even payment of dividends.

This document is typically prepared by the accounts payable department after receiving the supplier's invoice. In the process, the supplier's invoice is matched with the related purchase order and receiving report to ensure that only goods received and services rendered to the company will be processed for payment. Matching these three documents prevents the company from paying incorrect and sometimes fraudulent invoices.A voucher can be electronic, but most often, it is a manual, paper document.