What Is a Disbursement Check Voucher?

A disbursement check voucher is a fundamental document in a business’s financial operations, detailing outgoing payments. It provides clarity on why money is paid, to whom, and for what purpose. This record is a critical component for maintaining accurate financial records, ensuring transparency, and establishing a clear audit trail for all monetary disbursements. Vouchers help organizations manage cash flow and uphold financial accountability.

What is a Disbursement Check Voucher

A disbursement check voucher is a specialized internal document that details and authorizes an outgoing payment from an organization. It functions as more than just a simple check by providing extensive background information for a financial transaction. This document supports payments to vendors, suppliers, or third parties for goods, services, or reimbursements. Unlike a simple check, it serves as a verifiable record for every monetary exchange.

Organizations use disbursement check vouchers to establish a formal internal record of payments, distinct from the actual check. This practice ensures every payment is properly authorized and recorded, contributing to a company’s internal control framework. The voucher acts as a protective measure against errors, fraud, and duplicate payments by requiring thorough documentation and approval before funds are disbursed. It provides a layer of accountability and transparency that a standalone check cannot offer.

Essential Information on a Check Voucher

A disbursement check voucher includes the payee’s name and address. It clearly indicates the specific payment amount. The voucher also includes the date of the payment and the corresponding check number, allowing for easy reconciliation with bank statements.

The voucher also typically includes:

• Invoice number(s) being paid.
• A detailed description of the goods or services received, along with relevant account codes.
• Approval signatures or initials of authorized personnel.
• Vendor details, such as an identification number, to streamline future transactions and maintain organized vendor records.

How Check Vouchers Facilitate Payments

The process of using a disbursement check voucher begins when a payment obligation arises, often upon receiving a vendor invoice. The invoice is matched against related documents, including a purchase order and a receiving report, in a three-way match. This matching ensures that the goods or services were ordered and received as expected before any payment is considered. Once validated, this information prepares the check voucher, which acts as a cover sheet for the transaction.

Following preparation, the voucher and its supporting documentation enter an internal review and approval process. This involves multiple levels of authorization, including departmental and financial management review, to ensure compliance with company policies and budget allocations. This multi-step approval system is a key part of internal controls, preventing fraud, errors, and unauthorized payments by segregating duties. Once approved, the voucher authorizes check issuance, ensuring no payment is made without proper validation.

After the check is generated and sent, the transaction is formally recorded in the organization’s accounting ledgers, including the accounts payable and general ledgers. The approved voucher, along with copies of the check and all supporting documents, is filed and retained. Federal guidelines recommend retaining tax-related business records for at least three to seven years. This record-keeping provides a comprehensive audit trail, allowing for easy verification and reconstruction of transactions for financial audits or compliance reviews.