EYK9_2 - E x t e n d Yo u r K n o w l e d g e 9 2 Voucher...

E x t e n d Y o u r K n o w l e d g e 9 - 2 :
V o u c h e r S y s t e m o f C o n t r o l
A voucher system is a set of procedures and approvals designed to control cash
disbursements and acceptance of obligations. The voucher system of control
establishes procedures for:
•
Accepting obligations resulting in cash disbursements.
•
Verifying, approving, and recording obligations.
•
Issuing cheques for payment of verified, approved, and recorded obligations.
•
Requiring obligations to be recorded when incurred.
•
Treating each purchase as an independent transaction.
A good voucher system produces these results for every transaction. This applies
even when many purchases are made from the same company during a period.
A voucher system’s control over cash disbursements begins when a company
incurs an obligation that will result in a payment of cash. A key factor in this sys-
tem is that only approved departments and individuals are authorized to incur
such obligations. The system also often limits the kinds of obligations that a
department or individual can incur. In a large retail store, for instance, only a
purchasing department should be authorized to incur obligations from merchan-
dise purchases. Another key factor is that procedures for purchasing, receiving,
and paying for merchandise are often divided among several departments. These
departments include the one requesting the purchase, the purchasing depart-
ment, the receiving department, and the accounting department. To coordinate
and control the responsibilities of these departments, several different business
papers are used. Exhibit VSC9.1 shows how these papers are accumulated in a
voucher . A voucher is an internal business paper (or “folder”) that is used to accu-
mulate other papers and information needed to control cash disbursements and
to ensure that a transaction is properly recorded. We next discuss each document
entering a voucher. This is to show how a company uses this system in controlling
cash disbursements for merchandise purchases.
LO
Apply the voucher
system to control
cash disbursements.
Exhibit VSC9.1
Voucher and Business
Documents
Cheque
Receiving Report
Invoice Approval
Purchase
Requisition
Cashier’s Office
Sender
Purchase Or der
Invoice
Voucher
Accounting
Receiving
Supplier (Vendor)
Purchasing
Requesting
Supplier (Vendor)
Receiver(s)
Cashier ’ s Office
Accounting, Requesting, and Purchasing
Accounting
Supplier (Vendor), Receiving, Purchasing,
and Accounting
Purchasing and Accounting

P u r c h a s e R e q u i s i t i o n
Department managers in larger stores are usually not allowed to place orders
directly with suppliers. If each manager dealt directly with suppliers, the mer-
chandise purchased and the resulting liabilities would not be well controlled. To
gain control over purchases and the resulting liabilities, department managers are
often required to place all orders through a purchasing department. When mer-
chandise is needed, a department manager must inform the purchasing depart-
ment of its needs by preparing and signing a purchase requisition. A