A voucher system is a network of approvals by authorized individuals, acting independently, to ensure that all disbursements by check are proper.
Most medium and large companies use vouchers as part of their internal control over cash disbursements. The system begins with the authorization to incur a cost or expense. It ends with the issuance of a check for the liability incurred.
A voucher is an authorization form prepared for each payment in a voucher system. Companies require vouchers for all types of cash disbursements except those from petty cash.
A voucher system involves tow journal entries, one to issue the voucher and a second to pay the voucher.