In the simplest term, a Receipt Voucher (RV) is a proof of a monetary receipt issued by the company. It is also a form of money tracking mechanism. This receipt is usually reconciled with one (or some) of the transaction in the company bank account.
The example above is a simple example of when you’ll need to issue a RV. However, the transactions may not necessarily always be a 1-to-1 transaction relationship.
As you can see, here are some many-to-one and one-to-many RV relationships as well, and this is absolutely normal in the day-to-day business transactions of most companies.
Sales Invoice Vs Direct (Non-invoice) Payments
Now that you understand the concept of how the RV works, let’s dive in a little further.
Generally, all business must have a record of their Sales invoices. Hence, it is relatively straight forward to understand that all RVs must match with at least one Sales Invoice.
Unfortunately, many business owners forget that there are payment receipt that may not have invoices too. Typically, these are Sundry Income and examples of these receipts include Bank Interest earned, royalties, income from foreign exchange and etc.
These are usually outside the control of the company.
Note: For more information on Payment Vouchers, please read here.