Voucher vs. Invoice: Know the Difference
By Shumaila Saeed || Published on January 20, 2024
A voucher is a document authorizing a financial transaction, while an invoice is a bill detailing goods or services provided and payment due.
Key Differences
A Voucher is a document that authorizes a payment and is used for accounting purposes. It contains details about a transaction and serves as proof of the transaction's legitimacy. In contrast, an Invoice is a request for payment issued by a seller to a buyer, detailing goods or services provided, their costs, and the total amount due.
Shumaila Saeed
Jan 20, 2024
Vouchers are often used internally within organizations to authorize expenditure. They are part of the internal control system and can include receipts, purchase orders, or payroll records. Invoices, on the other hand, are external documents sent to clients or customers and are used to collect payments for goods or services.
Shumaila Saeed
Jan 20, 2024
In the processing workflow, a Voucher is usually created after a product or service has been received, and it precedes the payment. It is a reference for the accounts payable department. An Invoice, however, is generated once the seller has fulfilled a service or delivered goods, and it triggers the payment process.
Shumaila Saeed
Jan 20, 2024
The content of a Voucher typically includes information such as the vendor's name, the amount payable, authorization signatures, and account codes. An Invoice includes the seller's and buyer's contact information, a list of products or services provided, individual prices, total charge, payment terms, and due date.
Shumaila Saeed
Jan 20, 2024
Vouchers serve as a record-keeping tool and help in maintaining financial control. They ensure that every payment is properly authorized and documented. Invoices are crucial for maintaining financial records, tracking sales, managing inventory, and are essential for accounting and tax purposes.
Shumaila Saeed
Jan 20, 2024
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Comparison Chart
Purpose
Authorizes a financial transaction
Requests payment for goods or services
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Jan 20, 2024
Usage
Used internally within organizations
Sent externally to clients or customers
Shumaila Saeed
Jan 20, 2024
Timing
Created after receiving a service/product
Generated after providing a service/product
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Jan 20, 2024
Content
Details of transaction, authorization
List of products/services, prices, total
Shumaila Saeed
Jan 20, 2024
Function
Ensures proper documentation and authorization
Facilitates payment collection, record-keeping
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Jan 20, 2024
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Voucher and Invoice Definitions
Voucher
A voucher is a document authorizing payment for a transaction.
The company issued a voucher for the office supplies purchased.
Shumaila Saeed
Jan 09, 2024
Invoice
An invoice can act as a legal document in payment disputes.
In case of a payment delay, the invoice served as evidence of the debt.
Shumaila Saeed
Jan 09, 2024
Voucher
Vouchers serve as proof of authorization for expenditures.
She submitted a travel voucher to claim her business trip expenses.
Shumaila Saeed
Jan 09, 2024
Invoice
An invoice lists itemized charges and total amount due.
The freelance designer provided an invoice for her graphic design services.
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Jan 09, 2024
Voucher
A voucher details the specifics of a financial transaction.
The finance department processed the voucher for the new equipment.
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Jan 09, 2024
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Invoice
An invoice is a detailed bill for goods or services provided.
The contractor sent an invoice for the completed renovation work.
Shumaila Saeed
Jan 09, 2024
Voucher
Vouchers are used in accounting for verifying transactions.
The audit required every transaction to have a corresponding voucher.
Shumaila Saeed
Jan 09, 2024
Invoice
A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill.
Shumaila Saeed
Jan 05, 2024
Voucher
A written record of expenditure, disbursement, or completed transaction.
Shumaila Saeed
Jan 05, 2024
Voucher
A written authorization or certificate, especially one exchangeable for cash or representing a credit against future expenditures.
Shumaila Saeed
Jan 05, 2024
Invoice
A bill; a commercial document issued by a seller to a buyer indicating the products, quantities and agreed prices for products or services that the seller has already provided the buyer with. An invoice indicates that, unless paid in advance, payment is due by the buyer to the seller, according to the agreed terms.
Shumaila Saeed
Jan 05, 2024
Invoice
The lot or set of goods as shipped or received.
The merchant receives a large invoice of goods.
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Jan 05, 2024
Voucher
To issue a voucher to
A company that vouchers employees when the payroll cannot be met.
Shumaila Saeed
Jan 05, 2024
Invoice
The price which a seller or dealer pays the manufacturer for goods to be sold.
Shumaila Saeed
Jan 05, 2024
Voucher
A piece of paper that entitles the holder to a discount, or that can be exchanged for goods and services.
This voucher can be redeemed at any Walmart in the state until March 31 2013.
A voucher for a free kettle
This voucher entitles the bearer to a 20% discount on frozen goods.
Shumaila Saeed
Jan 05, 2024
Invoice
(transitive) To bill; to issue an invoice to.
I will invoice my supplier tomorrow.
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Jan 05, 2024
Invoice
A written account of the particulars of merchandise shipped or sent to a purchaser, consignee, factor, etc., with the value or prices and charges annexed.
Shumaila Saeed
Jan 05, 2024
Voucher
(advertising) A copy of a published advertisement sent by the agency to the client as proof of publication.
Shumaila Saeed
Jan 05, 2024
Invoice
The lot or set of goods as shipped or received; as, the merchant receives a large invoice of goods.
Shumaila Saeed
Jan 05, 2024
Voucher
(historical) A mechanical device used in shops for automatically registering the amount of money drawn.
Shumaila Saeed
Jan 05, 2024
Invoice
To make a written list or account of, as goods to be sent to a consignee; to insert in a priced list; to write or enter in an invoice.
Goods, wares, and merchandise imported from Norway, and invoiced in the current dollar of Norway.
Shumaila Saeed
Jan 05, 2024
Invoice
An itemized statement of money owed for goods shipped or services rendered;
He paid his bill and left
Send me an account of what I owe
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Jan 05, 2024
Invoice
Invoices request payment and outline payment terms.
The monthly invoice detailed the internet service charges and due date.
Shumaila Saeed
Jan 09, 2024
Voucher
One who vouches, or gives witness or full attestation, to anything.
Will his vouchers vouch him no more?
The great writers of that age stand up together as vouchers for one another's reputation.
Shumaila Saeed
Jan 05, 2024
Invoice
Invoices are used for record-keeping and accounting purposes.
The business keeps all invoices for end-of-year tax calculations.
Shumaila Saeed
Jan 09, 2024
Voucher
A book, paper, or document which serves to vouch the truth of accounts, or to confirm and establish facts of any kind; also, any acquittance or receipt showing the payment of a debt; as, the merchant's books are his vouchers for the correctness of his accounts; notes, bonds, receipts, and other writings, are used as vouchers in proving facts.
Shumaila Saeed
Jan 05, 2024
Voucher
The act of calling in a person to make good his warranty of title in the old form of action for the recovery of lands.
Shumaila Saeed
Jan 05, 2024
Voucher
A document attesting to a credit against certain defined expenditures; a recipt for prepayment; - often used in pre-arranged travel plans, to provide evidence of pre-payment of the cost of lodging, transportation, or meals.
Shumaila Saeed
Jan 05, 2024
Voucher
Someone who vouches for another or for the correctness of a statement
Shumaila Saeed
Jan 05, 2024
Voucher
A negotiable certificate that can be detached and redeemed as needed
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Jan 05, 2024
Voucher
Vouchers can represent prepaid services or discounts.
He used a meal voucher at the restaurant for a complimentary dinner.
Shumaila Saeed
Jan 09, 2024
Repeatedly Asked Queries
What details are included in a voucher?
A voucher includes transaction details, vendor information, and authorization signatures.
Shumaila Saeed
Jan 20, 2024
Who uses vouchers?
Vouchers are used by organizations for internal financial transactions.
Shumaila Saeed
Jan 20, 2024
What is a voucher?
A voucher is a document authorizing a specific financial transaction.
Shumaila Saeed
Jan 20, 2024
Can a voucher be exchanged for cash?
Some vouchers, like gift vouchers, can be exchanged for goods or services but not usually for cash.
Shumaila Saeed
Jan 20, 2024
Are vouchers necessary for all transactions?
Vouchers are essential for transactions requiring authorization and documentation.
Shumaila Saeed
Jan 20, 2024
Is an invoice legally binding?
Yes, an invoice can be a legally binding document, indicating the obligation to pay.
Shumaila Saeed
Jan 20, 2024
How do vouchers and invoices differ in purpose?
Vouchers authorize payments; invoices request payments.
Shumaila Saeed
Jan 20, 2024
How long should businesses keep vouchers and invoices?
They should be kept for several years, as required by accounting and tax laws.
Shumaila Saeed
Jan 20, 2024
What is an invoice?
An invoice is a bill sent by a seller to a buyer for goods or services provided.
Shumaila Saeed
Jan 20, 2024
Who issues invoices?
Sellers or service providers issue invoices to customers or clients.
Shumaila Saeed
Jan 20, 2024
What information does an invoice contain?
Invoices contain details of goods or services, prices, total amount, and payment terms.
Shumaila Saeed
Jan 20, 2024
Are vouchers and invoices both necessary in business transactions?
Yes, they serve different purposes and are both important in business transactions.
Shumaila Saeed
Jan 20, 2024
Are invoices important for inventory management?
Yes, they help track sales and manage inventory.
Shumaila Saeed
Jan 20, 2024
Can individuals use vouchers?
Yes, individuals can use vouchers like gift or discount vouchers.
Shumaila Saeed
Jan 20, 2024
Can a voucher be used as an invoice?
No, they are distinct documents with different purposes.
Shumaila Saeed
Jan 20, 2024
Can invoices be used for tax purposes?
Yes, invoices are essential for accounting and tax calculations.
Shumaila Saeed
Jan 20, 2024
Is it mandatory to pay an invoice by the due date?
Yes, to avoid penalties or legal issues, invoices should be paid by the due date.
Shumaila Saeed
Jan 20, 2024
Do vouchers have a monetary value?
Some vouchers, like gift vouchers, represent a specific monetary value.
Shumaila Saeed
Jan 20, 2024
Can invoices be issued electronically?
Yes, electronic invoices are common and legally valid.
Shumaila Saeed
Jan 20, 2024
Do vouchers need to be signed?
Yes, vouchers usually require authorization signatures.
Shumaila Saeed
Jan 20, 2024
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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