How business voucher works and how to create one

By Annapoorna


Updated on: Feb 9th, 2022


3 min read

social iconssocial iconssocial iconssocial icons

Vouchers are used for business payments to keep a record of payments made to the vendor. They serve as evidence of payment transactions entered in the books by the accounts payable department.

What is a business voucher?

A business voucher is an internal document issued by the accounts payable department of an organisation on receipt of an invoice. It serves as proof of recording a payment transaction in the books and at the same time helps to maintain effective control over the payables process.

How does a business voucher work?

Under normal business circumstances, payments are not immediately due. A business needs to make payment as per the payment terms and maturity date set by the supplier. It usually varies from 30 to 90 days. When a business receives an invoice from the supplier, it creates a voucher to set reminders for payments due on different dates. The voucher is stamped as paid when the payment is made, and the accounting entry for payment is passed. A voucher should contain the following details:

  • Invoice number and date by the supplier
  • Details of the supplier such as its name, address and contact information
  • Amount due and due date of payment
  • Purchase order details 
  • Details of goods receipt 
  • Proof of payment done against the invoice
  • Signature of the authorised representative of the company

Let us understand the process of creating a business voucher:

  1. A company creates a purchase order stating its requirements to the supplier.
  2. The supplier may accept the same or request some changes before acceptance.
  3. The company will receive the delivery of goods or services as per the order placed.
  4. The company will receive an invoice for such receipt of goods or services. It will then create a voucher to support the invoice.
  5. Make the payment on the due date and pass an accounting entry for such payment.

Steps to create a business voucher

There are various payment voucher templates available in MS word, excel, etc. One can choose the relevant format as per the business needs. Below are the steps to create a business voucher: 

1.Select the suitable template and update the company logo on the same.

payment voucher

2.Update the supplier details on the same.

3.Enter the invoice details, payment details, description of goods and amount.

4.The voucher is then authorised by the respective accounts payable head.

5.It is saved for further accounting purposes.

About the Author

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more


Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption