Essentially, a Payment Vouchers (PV) is a proof of a monetary payment issued by the company. Like the Receipt Voucher, it is also a form of money tracking mechanism. However, unlike receiving money, paying out money is usually a more sensitive discussion as most companies would prefer to have less outgoings.

This receipt is usually reconciled with one (or some) of the transaction in the company bank account. Here is an example of a simple transaction.

 

And that’s just a straight forward example of the Payment Vouchers relationship.

Complex Transactions

Now that you understand how a PV works, here are some slightly more complex records. This is a many-to-one record.

 

And a one-to-many PV record.

 

Thankfully, SmartB’s accounting module can create PVs and match them with both the bank statements and accounting records seamlessly. For more information, please contact us here.

Direct (Non-invoice) Payments

Unlike the Direct Payment Received, it is very common to have Direct Payment Paid transactions in businesses. Some examples include petty cash expenses, travel expenses, meals & entertainment and etc. Basically, you make a direct payment without receiving an invoice.

Remember that a new payment record must be created every time you have a payment paid (or received). However, due to the tedious records keeping activities, many business owners failed to keep a clear record of their payments and, more often than not, can lead to heavy fines or penalties.

 

 

The example above shows a monetary trial that is is important when making petty cash or non-invoice payments.

Note: For more information on Receipt Vouchers, please read here

IMPORTANT: In the event that you do not have an invoice, make sure to check with your accountant to verify if the record can be posted.