The accounts payable department receives copies of the purchase requisition, purchase order receiving report and vendor invoice. These documents are reviewed, certified as to completeness, and assemble in a voucher package. The voucher package is filed by date.
Periodically the voucher package file is reviewed and voucher packages that are due are pulled for payment. Accounts payable performs payment processing calculating the amount due, discount (if any), and other such items. A voucher check is prepared for each voucher. Voucher checks are posted to the voucher register. A total of these postings are prepared. Voucher packages are posted to the accounts payable ledger. This posting is summarized on a journal voucher and a distribution voucher. The voucher checks, voucher packages, and control total are approved and forwarded to the cash disbursements department. The journal voucher is forwarded to general ledger. The distribution voucher is forwarded to the department managing the expense ledger.
After the voucher checks and voucher packages are reviewed the checks are signed and the voucher packages are canceled and filed by number. The voucher checks are then posted to a check register. This posting is total and reconciled to the control total received from accounts payable. Voucher checks are forwarded directly to the payees. The control total is forwarded to general ledger.
The distribution voucher is posted to the expense ledger and/or inventory ledger as appropriate. A distribution summary is prepared, reconciled to the distribution voucher, and approved. The distribution voucher and a copy of the distribution report are filed by date. A copy of the distribution summary is for warded to general ledger.
The distribution summary received from the expense ledger the journal voucher received from accounts payable and the control total from cash disbursements are reconciled and the totals are posted to the general ledger. The distribution summary received from the expense ledger, the journal voucher received from the accounts payable department, and the control total from the cash disbursements department are filed by date.
The canceled checks are received from the bank along with the bank statement. Independent bank reconciliation is an important control in a cash disbursement application system.
A voucher system is essentially a review technique. A system in which every organizational expenditure must be documented with an approved voucher. The real control over disbursements is a final review of documents evidencing the entire transaction prior to the authorization of payment. A voucher payable system, unlike the accounts payable system encompasses all expenditures, including trade accounts, payroll capital expenditure, and so on.