What is a receipt voucher?
Published
A receipt voucher documents cash entering the business: from whom, how much, by what means, against which invoices. It is a cash-movement document, not a sales document - and confusing the two roles produces one of the most common double-counting errors.
The entry
Al-Waha's receipt for a customer payment against the SAR 34,500 invoice - SAR 20,000 by bank transfer:
| Account | Debit | Credit |
|---|---|---|
| Bank | 20,000 | |
| Accounts receivable | 20,000 |
This is entry three of the sales cycle on the journal entry page - the receipt voucher is its source document. Note what the entry lacks: no revenue, no VAT - both arose with the invoice.
Why it is not revenue - the costly error
Booking receipts as revenue counts the sale twice: once at invoicing, once at collection. The result: revenue nearly doubled, receivables that never fall, and a sales declaration that can't match the invoices. The decisive rule: the invoice creates the revenue; the voucher closes the receivable.
Allocating a payment across invoices
A customer owes three invoices and sends one amount - which invoice does it settle?
- First: whatever the customer designated in the transfer or correspondence.
- Undesignated: oldest-first is the safest convention - it keeps the ageing honest.
- Never leave the amount "unallocated" for days: it distorts both the ageing report and the customer statement.
Its role in cash control
- Sequential numbering of vouchers, like invoice series - a gap here is a question about cash, not paperwork.
- Segregation of duties where possible: who receives cash ≠ who records it ≠ who reconciles the bank.
- A copy to the customer on cash collection - their receipt is their defence and yours.
Frequently asked questions
I collected an advance before any invoice - how do I record it?
Bank debit, customer advances (a liability) credit - no revenue before supply. Its VAT follows the advance-payment rules, settled with your accountant.
A cheque receipt, then the cheque bounced?
A reversing entry restores the receivable, with the bounce documented as an attachment - and the invoice rightly returns to unpaid.
Does a receipt voucher replace the consumer's tax invoice?
No. A taxable sale needs its tax invoice (usually simplified); the voucher documents the cash, not the supply.