What is a Voucher System?

Definition: A voucher system procedures design to only allow approved cash disbursements and new obligations. In other words, a voucher system is a set of internal controls that helps management stop fraudulent withdrawals from the company by employees and others outside the organization.

What Does Voucher System Mean?

A voucher system sets up procedures to safely verify, approve, record, and issue cash disbursements. Since cash is the most liquid asset company’s can own, it is highly susceptible to theft and fraud. The voucher system establishes safeguards to protect a company’s cash.


Here’s an example of a typical voucher system for purchasing raw materials. First, the workers in the assembly line notice they are running out of materials, so they notify the purchasing department that they need more by sending a purchase request.

Once the purchasing department analyzes and approves the purchasing request, it is then sent to the ordering department to order the goods.

Once the ordering department has ordered the goods, all of the documents in the voucher file are sent to the receiving department.

After the receiving department receives the shipment, it notifies the purchasing department that the goods arrived and sends the invoice and packaging slip to the accounting department. The goods are then sent to the assembly line floor. The accounting department can record the transaction and sent approval to the cashier to pay for the goods.

As you can see, the series of controls that the voucher system puts in place prevents the assembly line from ordering goods at anytime. It also prevents them from fraudulently ordering too many goods or trying to order goods and keep the money.