What is a payment voucher?
Published
A payment voucher documents cash leaving the business: to whom, how much, by what means, against which obligation. It mirrors the receipt voucher, with higher control stakes - because errors and abuse cost more on the outbound side.
The entry
Al-Waha settles the equipment supplier's bill (the SAR 11,500 recorded earlier):
| Account | Debit | Credit |
|---|---|---|
| Accounts payable | 11,500 | |
| Bank | 11,500 |
No expense in this entry - the expense/asset and input VAT arose when the supplier bill was recorded. The voucher closes the payable, exactly as the receipt voucher closes the receivable.
The clean path: obligation → approval → payment
1. The obligation is documented: a recorded supplier bill (after its three-way match), a contract, or a payroll sheet2. Approval per the permission structure: a supervisor threshold, management above it3. Payment, and the voucher issues with its attachments4. It appears in the bank reconciliation at the same amount and date
The golden rule: no payment without a prior obligation document. "Pay him now, we'll sort the paperwork later" is the sentence that precedes most accounting chaos - and some of its abuses.
Common payment cases and their entries
| Case | Entry |
|---|---|
| Settling a supplier | Accounts payable / Bank |
| A direct no-credit expense (government fees) | Expense + input VAT where applicable / Bank |
| An advance to a supplier | Supplier advances (asset) / Bank |
| Petty cash replenishment | Petty cash / Bank |
| Owner's drawings | Owner's current account / Bank - never an expense |
Frequently asked questions
Does every payment need a voucher, even small ones?
Every cash outflow needs documentation; small recurring ones are served by a petty cash float under its own regime - whose replenishment is itself by voucher.
I paid a company expense from my personal account?
Record the expense with its document, crediting the owner's/partner's current account - then settle. Cleaner: a company card and account, keeping such cases the exception.
Voucher vs the bank's payment order?
The bank order is the execution channel; the voucher is the internal accounting document with its attachments and approval. Execution without a voucher is a documentation gap; a voucher without execution is an unpaid obligation.