A voucher check is a hybrid payment document that combines a negotiable check with one or more detachable voucher stubs (also called remittance advice). The check portion is the negotiable instrument that the payee cashes or deposits; the voucher stubs contain the supporting details of the transaction (payee name, invoice or voucher number, date, amounts, and any deductions or memos). Together they create an auditable paper trail linking the payment to the underlying authorization and documentation.
Key takeaways
– A voucher check pairs a check with removable vouchers (remittance advices) so both payer and payee can retain transaction details.
– Common uses: payroll checks and vendor payments issued by accounts payable.
– Voucher checks improve internal control, reconciliation, and dispute resolution by preserving supporting information with the payment.
– Many businesses use three‑part, perforated voucher checks for computerized printing: one check plus two stubs (payee and issuer copies).
Understanding voucher checks — how they work
– Format: Business-sized checks (long format) with one check portion and one or two voucher stubs separated by perforations. Modern accounting systems print all parts together on standard paper for convenience.
– Workflow: The issuer prints the document, detaches and distributes the parts (the payee receives the check and usually a voucher stub; the issuer retains the corresponding stub or files additional supporting documents).
– Purpose: The voucher portion contains invoice numbers, purchase order references, earnings and deduction breakdown (for payroll), voucher number, signatures/authorizations, and memos. This maintains a clear audit trail for why the payment was made and who authorized it.
Who uses voucher checks?
– Payroll departments: Often called payroll or pay stubs, voucher checks show gross pay and deductions (taxes, benefits, garnishments). Even when direct deposit is used, many employers retain voucher records as a backup.
– Accounts payable and purchasing: Vendors receive voucher checks when an invoice has been matched to a purchase order and receiving documentation. Accounts payable keeps the issuer’s voucher copy and supporting paperwork (invoice, PO, receiving report) for reconciliation and audit.
Parts of a voucher check (typical fields)
– Voucher number or reference ID
– Payee name and address
– Date of payment
– Check amount (gross and, for payroll, net after deductions)
– Breakdown of amounts (invoices paid, payroll gross/net/deductions)
– Authorization/signature fields
– Memo or explanation (goods/services paid, PO number, invoice numbers)
Practical steps: issuing voucher checks (accounts payable / payroll)
1. Match and verify supporting documents
• For vendor payments: match invoice to purchase order and receiving report. For payroll: confirm time sheets, payroll calculations, and authorized deductions.
2. Approve payment
• Obtain required approvals per company policy (manager sign-off, budget owner, etc.).
3. Create a voucher record
• Enter voucher number, payee, invoice/PO references, amounts, and authorization into the accounting system. Attach scanned or physical supporting docs.
4. Print voucher check package
• Use preprinted or blank three‑part forms compatible with your printer; print the check and attached vouchers on one sheet.
5. Sign and secure the check
• Follow signature authorization rules (dual signatures if required). Keep signed checks secure until distribution.
6. Distribute parts
• Give the check and payee voucher to the payee. Retain the issuer voucher with supporting documents in your AP or payroll file.
7. Record and reconcile
• Post the payment to the general ledger and reconcile bank statements to ensure the check cleared. File the voucher and supporting documents per retention policy.
Practical steps: receiving and processing voucher checks (payee)
1. Inspect the voucher stub before cashing/depositing
• Verify names, amounts, invoice or payroll details, and any explanation to ensure payment matches expected amounts.
2. Detach and retain the voucher stub for your records
• Keep the voucher as evidence of payment and as a cross-reference to invoices and your receivables.
3. Endorse and deposit or cash the check
• Follow your bank’s deposit procedures. Reconcile the payment against outstanding invoices or payroll records.
Best practices and internal controls
– Segregation of duties: Separate responsibilities for invoice approval, check preparation, and check signing to reduce fraud risk.
– Limit access to check stock and signature plates: Store physical check forms and signature devices in locked secure locations.
– Use positive pay and bank controls: Submit issued check details to your bank to prevent unauthorized checks from clearing.
– Dual signatures for large payments: Require two authorized signatures for checks above a set threshold.
– Reconcile routinely: Match voucher records, invoices, and bank statements monthly.
– Retention policy: Keep voucher files and supporting documents according to company policy and regulatory rules (commonly several years—follow applicable laws and industry standards).
– Consider electronic alternatives: When practical, use electronic payments with remittance advices or secure vendor portals; retain electronic remittance records to maintain the audit trail.
When to use voucher checks vs. electronic payments
– Use voucher checks when you need a strong physical audit trail, the payee requires paper remittance, or internal controls mandate hard‑copy documentation (e.g., specific audit or compliance situations).
– Use electronic payments (ACH, wire, virtual cards) when speed, cost, and security are priorities—but ensure the remittance details are captured and retained electronically to preserve the audit trail.
Common pitfalls and how to avoid them
– Missing or incomplete vouchers: Ensure voucher templates require all necessary fields (voucher number, invoice refs, amounts).
– Unsecured check stock: Keep check forms and signed checks in secure storage until distribution.
– Inadequate file organization: Maintain indexed voucher files (paper or digital) tied to voucher numbers for quick retrieval.
– Failure to reconcile: Reconcile issued voucher checks to bank statements and GL entries monthly to catch errors and fraud quickly.
Example checklist for issuing a voucher check
– Invoice/PO matched and receiving confirmed?
– All approvals obtained?
– Voucher number assigned and entered into system?
– Check printed on voucher form with correct amounts?
– Authorized signatures obtained?
– Payee voucher sent with the check; issuer voucher filed with supporting docs?
– Payment posted and bank reconciliation scheduled?
Conclusion
Voucher checks combine payment execution with embedded documentation, making them a useful tool for preserving a clear audit trail—especially for payroll and accounts payable. Whether you continue to use paper voucher checks or transition to electronic payments, the core goal is the same: ensure payments are properly authorized, documented, and easily auditable.
Source
– Investopedia, “Voucher Check,” Madelyn Goodnight.
What Is a Voucher Check?
A voucher check combines a negotiable payment instrument (the check) with remittance advice (the voucher). The voucher portion documents the transaction details—payee name, invoice or voucher number, dates, amounts, deductions, and notes—creating an auditable paper trail for both payer and payee. Voucher checks are commonly used in payroll and accounts-payable processes to ensure proper authorization and to maintain backup documentation for payments.
Source: Investopedia / Madelyn Goodnight
Why Voucher Checks Matter
– Provide an immediate paper trail that links payment to supporting documentation (invoices, purchase orders, receipts).
– Serve as an internal control that helps prevent unauthorized payments and verifies receipt of goods or services.
– Help both payer and payee reconcile payments and resolve disputes quickly.
– Remain useful where electronic payments are impractical, when a physical record is desired, or to supplement electronic systems.
Common Users and Uses
– Payroll departments issuing employee paychecks with attached pay stubs (gross pay, deductions, net pay).
– Accounts payable departments paying vendors after matching invoices to purchase orders and delivery confirmations.
– Organizations that require physical proof of payment—nonprofits, government agencies, and some small businesses.
– Situations where electronic banking isn’t available, or where internal policy calls for physical documentation.
How Voucher Checks Are Structured
– Single two-part layout: one half is the check, the other is remittance advice the payee keeps; issuer retains a copy.
– Three-part layout (typical for computerized systems): one check and two voucher stubs—one for the payee, one for the issuer (and sometimes a third for accounting).
– Business-sized checks: longer than personal checks but standard width, designed to feed through dot-matrix or laser printers.
– Perforations: make it easy to separate the check from voucher stub(s).
Step-by-Step: How Accounts Payable Typically Processes a Voucher Check
1. Receive invoice from vendor.
2. Match invoice to purchase order and receiving documents (three-way match).
3. Create a voucher record that aggregates invoice number(s), voucher number, payee, amount, and account coding.
4. Route the voucher and supporting documents for authorization (approvals/signatures).
5. Schedule payment according to terms (e.g., net 30).
6. Prepare the check and print attached voucher stub(s) using accounting software or check stock.
7. Have authorized signatories sign the check if manual signatures are required.
8. Mail or deliver the voucher check to the vendor; retain the issuer’s voucher stub and supporting documents in the vendor file.
9. Reconcile bank statements against issued checks and update the general ledger.
Step-by-Step: What a Payee Should Do When Receiving a Voucher Check
1. Detach and retain the payee voucher stub from the check for records (do this before endorsing).
2. Verify details: voucher number, amounts, invoice numbers referenced, and any memos.
3. Endorse and deposit or cash the check per standard procedures.
4. File the voucher stub with corresponding invoice and payment records for easy reconciliation and auditability.
Example Scenarios
Payroll Example
– Company X issues payroll on the 15th. Employee Jane Doe receives a voucher check that shows:
• Voucher No.: PR-2025-015
• Payee: Jane Doe
• Gross Pay: $3,200.00
• Federal Tax: $480.00
• State Tax: $96.00
• Insurance: $120.00
• Net Pay: $2,504.00
Jane keeps the detached voucher for personal records; payroll retains the company copy to support payroll expense and tax records.
Vendor Payment Example
– Vendor Acme Supplies invoices $5,000 for goods shipped. AP performs a three-way match with PO and receiving report, then issues Voucher Check VCH-349.
• Check amount: $5,000.00
• Voucher references: Invoice INV-778, PO-1024, Received 04/02/2025
Vendor keeps the voucher stub with the shipment paperwork; the business files its copy in the vendor payment file.
Benefits of Using Voucher Checks
– Strong audit trail linking payment to authorization and receipt.
– Reduces risk of duplicate payments by referencing voucher/invoice numbers.
– Improves dispute resolution—both parties can reference the same voucher information.
– Facilitates month-end closing and accounting reconciliation.
– Useful for organizations that must maintain hard-copy records for regulatory or internal policy reasons.
Limitations and Drawbacks
– More time-consuming and costly than electronic payments (printing, paper, postage).
– Slower than ACH, wire transfers, or direct deposit.
– Physical checks can be lost, stolen, or forged if not properly controlled.
– Paper-heavy processes may be less efficient for high-volume payables without automation.
Voucher Checks vs. Electronic Payments
– Voucher checks: tangible remittance advice, physical signature, paper trail at time of payment.
– Electronic payments (ACH, direct deposit, wire): faster, cheaper, and increasingly preferred, but remittance information sometimes needs separate transmission (e.g., email or EDI).
– Best practice: combine electronic payments with electronic remittance advice (eRemit) or maintain scanned voucher files to keep the advantages of automation plus auditability.
Best Practices for Organizations
– Automate voucher creation and check printing through integrated accounting or ERP systems to reduce errors.
– Use standardized voucher numbers and coding conventions to make searching and reconciliation simple.
– Maintain segregation of duties: different people for invoice approval, voucher preparation, check signing, and reconciliation.
– Store copies (scanned and physical if required) of voucher checks and supporting documents for the appropriate retention period.
– Where possible, prefer electronic remittance for speed, and retain electronic copies of remittance advice for audit purposes.
– Train employees on how to process, store, and reconcile voucher checks securely.
Security and Record Retention Considerations
– Protect check stock and signed blank checks; limit access to authorized personnel only.
– Use positive pay and bank reconciliation controls to detect unauthorized or altered checks.
– Retention periods vary by jurisdiction and purpose; common practice is to retain financial records for at least 3–7 years, but confirm legal or regulatory requirements relevant to your industry and location.
– Consider scanned backups stored in secure, access-controlled document-management systems.
Sample Voucher Check Layout (descriptive)
– Left section: Check (payee name, amount in words and numerals, date, payor signature line, bank routing/account numbers).
– Right/top/bottom stubs: Voucher stub(s) including voucher number, payee, invoice numbers referenced, payment amount, account codes (GL), date, authorized signatures, and memo fields for notes or deductions.
When to Continue Using Voucher Checks
– Your organization or industry requires paper documentation for compliance.
– Vendors or payees prefer or require issued checks.
– You need an immediate, attached remittance stub for reconciliation purposes.
– Electronic remittance workflows are not feasible or fully implemented.
When to Move Away from Voucher Checks
– High transaction volumes where operational costs make paper checks inefficient.
– When most counterparts accept and reliably process electronic remittance.
– Where faster cash flow and reduced float are priorities.
Concluding Summary
Voucher checks merge payment and remittance advice into a single, auditable document that supports strong internal controls in payroll and accounts payable. They are particularly valuable where physical documentation is required or when organizations want an immediate, attached record tying payment to supporting invoices and receipts. While paper voucher checks provide clear benefits for auditability and dispute resolution, organizations should weigh those benefits against costs, security risks, and the efficiencies unlocked by electronic payments and digital remittance. Best practice is to automate voucher processes where possible, enforce segregation of duties, and retain clear records—paper or digital—consistent with regulatory requirements.
Sources
– Investopedia, “Voucher Check” — Madelyn Goodnight.