Difference Wiki

Voucher vs. Invoice: What's the Difference?

Edited by Sawaira Riaz || By Sumera Saeed || Published on November 27, 2023
A voucher is a document representing internal approval or proof of a transaction, while an invoice is a bill detailing goods/services provided and the amount due.

Key Differences

Voucher and invoice are both financial documents, but they serve different purposes in the accounting and business realms. A voucher acts as an authorization or proof of a certain transaction, often used internally within an organization. It might be used to approve an expenditure before it takes place. Conversely, an invoice is a bill sent by a vendor to a customer, listing the products or services provided, their cost, and the total amount owed.
Sumera Saeed
Nov 27, 2023
While vouchers are typically used as internal controls, ensuring that transactions are properly authorized and recorded, invoices act as a formal request for payment. The primary function of an invoice is to detail the transaction between the seller and the buyer, providing clear evidence of what was delivered and how much is owed.
Sumera Saeed
Nov 27, 2023
In many businesses, vouchers are used in the accounts payable process. Before a payment is made, a voucher is prepared to show that the payment has been approved. This might include supporting documentation like purchase orders or receipts. An invoice, on the other hand, often triggers the accounts payable process. Upon receipt of an invoice, a company knows it has an obligation to make a payment.
Sumera Saeed
Nov 27, 2023
In essence, while both vouchers and invoices are pivotal in ensuring proper financial processes and controls, they have distinct roles. A voucher is more about internal checks and validation, whereas an invoice focuses on external transactions and communications between buyer and seller.
Sumera Saeed
Nov 27, 2023

Comparison Chart

Primary Function

Internal approval or proof of a transaction
Bill detailing goods/services provided and the amount due
Sumera Saeed
Nov 27, 2023
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Usage

Internally within organizations
Between vendors and customers
Sumera Saeed
Nov 27, 2023

Role in Accounting

Used in accounts payable as a pre-approval
Triggers accounts payable process
Sumera Saeed
Nov 27, 2023

Documentation

May come with supporting documents like purchase orders or receipts
Details products/services, their cost, and the total amount owed
Sara Rehman
Nov 27, 2023

Perspective

Represents an internal control mechanism
Represents an external transaction
Aimie Carlson
Nov 27, 2023

Voucher and Invoice Definitions

Voucher

A prepaid token or coupon representing monetary value.
He redeemed a gift voucher at the bookstore.
Aimie Carlson
Nov 01, 2023
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Invoice

A record of a transaction specifying what was provided and its cost.
Every month, I receive an invoice for my utilities.
Janet White
Nov 01, 2023

Voucher

A document authorizing a particular payment.
She provided the voucher to approve the office supplies purchase.
Sawaira Riaz
Nov 01, 2023

Invoice

A document detailing goods or services sold with the total amount due.
The contractor sent an invoice for the completed renovation work.
Sawaira Riaz
Nov 01, 2023

Voucher

An authorization or reference to a future payment.
The accountant issued a voucher to reimburse travel expenses.
Harlon Moss
Nov 01, 2023

Invoice

A bill indicating terms of payment, items, and their prices.
The invoice had a 30-day payment term.
Sara Rehman
Nov 01, 2023

Voucher

Proof of a completed transaction or payment.
I received a voucher confirming my hotel reservation.
Sara Rehman
Nov 01, 2023

Invoice

A formal request for payment from a seller to a buyer.
The supplier's invoice listed all the items we ordered.
Sumera Saeed
Nov 01, 2023

Voucher

A receipt indicating a purchase or payment.
Upon payment, the shop provided a voucher as proof.
Janet White
Nov 01, 2023

Invoice

An itemized statement of money owed for goods shipped or services rendered.
The design agency provided an invoice for their branding services.
Sumera Saeed
Nov 01, 2023

Voucher

A piece of substantiating evidence; a proof.
Sumera Saeed
Oct 31, 2023

Invoice

A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill.
Sumera Saeed
Oct 31, 2023

Voucher

A written record of expenditure, disbursement, or completed transaction.
Sumera Saeed
Oct 31, 2023

Invoice

The goods or services itemized in an invoice.
Sumera Saeed
Oct 31, 2023

FAQs

What is a voucher used for?

A voucher is used as proof or authorization of a specific transaction, often internally.
Sumera Saeed
Nov 27, 2023

Who typically sends an invoice?

A vendor or service provider typically sends an invoice to a customer or client.
Sara Rehman
Nov 27, 2023

Is an invoice a bill?

Yes, an invoice is essentially a bill detailing goods or services provided and the amount due.
Sawaira Riaz
Nov 27, 2023

Is a voucher an internal or external document?

A voucher is typically an internal document used within organizations.
Sumera Saeed
Nov 27, 2023

Can a gift card be considered a voucher?

Yes, a gift card can be viewed as a type of voucher representing prepaid value.
Aimie Carlson
Nov 27, 2023

Do all invoices require immediate payment?

No, invoices often have specified payment terms that give recipients time to make the payment.
Sumera Saeed
Nov 27, 2023

Do vouchers represent money?

Vouchers can represent a prepaid monetary value or serve as proof or authorization of a transaction.
Sumera Saeed
Nov 27, 2023

Is an invoice legally binding?

An invoice itself isn't a contract, but it's a formal record of a financial obligation.
Sumera Saeed
Nov 27, 2023

How does an invoice differ from a receipt?

An invoice is a request for payment, while a receipt is proof of payment.
Harlon Moss
Nov 27, 2023

Who typically receives an invoice?

A buyer or client typically receives an invoice from a seller or service provider.
Sumera Saeed
Nov 27, 2023

Can a voucher be electronic?

Yes, many modern vouchers are electronic, especially in online transactions.
Sumera Saeed
Nov 27, 2023

What's the difference between a voucher and a coupon?

While similar, a voucher typically represents a prepaid value, while a coupon offers a discount.
Sumera Saeed
Nov 27, 2023

Are vouchers only related to money?

Not always. While some vouchers represent value, others simply authorize or validate a transaction.
Aimie Carlson
Nov 27, 2023

What details are typically found on an invoice?

An invoice usually lists the products/services, their cost, total amount due, and payment terms.
Sumera Saeed
Nov 27, 2023

How are invoices and vouchers connected in business processes?

In businesses, receiving an invoice can lead to the creation of a voucher as part of the accounts payable process.
Sumera Saeed
Nov 27, 2023

Can an individual issue a voucher?

Yes, individuals can issue vouchers, especially in contexts like gift vouchers.
Harlon Moss
Nov 27, 2023

What happens if a voucher is lost?

Depending on the context, a lost voucher might result in loss of its value or need for re-issuance.
Harlon Moss
Nov 27, 2023

What should one do if they dispute an invoice?

If an invoice is disputed, one should promptly communicate with the issuer to resolve the discrepancies.
Sara Rehman
Nov 27, 2023

Why are vouchers important for businesses?

Vouchers act as internal controls, ensuring transactions are properly authorized and documented.
Janet White
Nov 27, 2023

When is an invoice typically paid?

An invoice is usually paid based on the payment terms specified, often within 30, 60, or 90 days.
Aimie Carlson
Nov 27, 2023
About Author
Written by
Sumera Saeed
Sumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
Edited by
Sawaira Riaz
Sawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.

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