What is a Voucher Check?
A voucher check is a hybrid of a check and a voucher, also called “remittance advice,” which produces an auditable paper trail on the check’s payment by including relevant information about the parties involved in the transaction.
Knowing How to Use Voucher Checks
The voucher check establishes a paper trail for the check issuer’s payment. Before cashing the voucher check, the receiver separates one voucher portion and keeps it for documentation. The issuer retains the remaining voucher.
Three components make up voucher checks used in computerized accounting systems, and they all fit neatly on standard-sized paper sheets to make printing them easier. Typically, the checks are business-sized, meaning they are the same width but longer than regular checks. The check is one portion; the other pieces are the issuer’s and payee’s vouchers for their respective records. The various pieces are easily separated thanks to the perforations.
The accounts payable department of a business uses vouchers to collect and submit all of the supporting documentation required to authorize and monitor the payment of an obligation. A voucher is the backup paperwork for payroll, invoicing, and accounts payable. (Accounts payable are the short-term invoices businesses owe suppliers and vendors.) The voucher matters because it is an internal accounting control system that ensures all payments are legitimately approved and the acquired products or services are genuinely delivered.
Who uses voucher checks?
An organization’s payroll department frequently uses payroll checks, sometimes voucher checks. A voucher number, the payee’s name, the date, the amount (gross and net if any deductions are made), signatures, and any memo comments that must be documented are all included. Regarding payroll, it’s standard practice to have a paper trail backup, even if direct deposit gradually replaces other paying methods.
Vendors also use vendor checks. When an invoice, in this case, matches a purchase order and supporting documents proving the transaction was completed, a voucher check is given. A file including voucher records of vendor payments is also beneficial to the accounts payable department for settling payment disputes and getting the books ready for internal month-end closings.
Conclusion
- An official payment method that leaves an audit trail on the payment information on the check is a voucher check.
- Three components comprise a voucher check: the check, a payee voucher, and an issuer voucher. These were provided as three perforated items from a typical paper sheet before automated payroll.
- An organization’s payroll department frequently uses payroll checks, sometimes voucher checks.
