Essay Sample on The Voucher System

A voucher system in an organization can be a very important tool in helping either a small or large organization maintain as well as manage its cash controls. Hence a voucher can be defined as a way of approving the cash expenditure in a company. A voucher is a filled-out that categorizes what the company should pay for, the sum of money to be spent or paid, and the specific account details and account to be charged from. Once the management has approved the payment or the voucher of the organization, then the expenditure structure is approved to issue the payment. Hence a voucher system is a control that is used by an organization or company to make sure that funds or cash is spent only on approved or authorized purchases. A voucher does not only help a firm in making cash [payments, but it is also very essential in creating a critical aspect of internal controls, which includes documentation, and segregation of responsibilities. A comprehensive voucher system comprises expenditures made from the organization's petty cash as well as the account receivable from the organization to the third party.

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The Components of a Voucher System

A voucher system comprises of single pre-numbered vouchers, a registered voucher, a paid and unpaid voucher files. Individual vouchers can be electronic; however, most organizations prefer to use paper documents. Irrespective of the form in which the individual vouchers are in, they prove that a transaction was autorised and consequently made.

A voucher register, in most instances, is a spreadsheet format, lists open, unpaid vouchers, as well as information as top when and the method of payment in which the voucher was paid. For instance, if an organization pays an account receivable online, then the voucher register will identify the payment as online payment and capture the online payment confirmation number or code. The paid and unpaid vouchers files are where the vouchers are kept.

The Scope of Control

A voucher system mainly starts in instances when the company experiences a cash payment commitment. In many instances, for instance, in petty cash, the obligation, as well as the payment in relation to the obligation, occurs simultaneously. On the other hand, in instances such as account receivables, several processes, steps, and departments are involved in the transaction. In this instance, the voucher structures act as a spot check to guarantee that the transaction or purchase takes place, and proper authorization is accorded; this includes a purchase request, a legal purchase order, as well as an accompanying proof of purchase. A voucher system of control makes sure that the person officiated to compile, store as well as organize the vouchers are not the same that are authorized to make the payments.

A Voucher Supporting Documents

A voucher can also be termed as a form that documents all the supporting documents showing the money owned as well as the payments made to the vendors or suppliers for the outstanding payables. The voucher, as well as the supporting documents, are mainly recorded in a voucher register. The supporting documents for a voucher system include:

• An invoice from the supplier
• The organization's purchase order
• The supplier or the vendor name to be paid
• The terms and conditions of payment which comprise of the amount, the due dater as well as any discount granted.
• The proof of payment as well as the date the payment was made
• A receipt to acknowledge that the company received the goods from the supplier
• The general ledger transaction for the accounting purposes

The signature and the name of the authorizing representative or personnel at the firm for the purchase as well as payment.

The total sum of all the vouchers that have outstanding balances owed is recorded as account payables on the organization's balance sheet. When the vouchers have been settled in full, a record to show the payment has been made is included, and then the vouchers are documented as paid.