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The same kind of transaction is booked in different voucher types, so bank movements go missing from the bank book and reports become inconsistent.
Each voucher type has a fixed purpose: bank and cash movements in receipt, payment or contra; bills in sales or purchase; adjustments in journal; returns in debit and credit notes.
Agree a voucher-type rule per transaction, number vouchers in series, and attach the source document to each.
Consistent books in which every bank line can be ticked against a receipt, payment or contra voucher during reconciliation.
A voucher is the document or screen entry that supports one transaction. Indian accounting software groups vouchers into types, mainly receipt, payment, contra, journal, sales and purchase, plus debit notes and credit notes. Choosing the right type each time keeps the books consistent and makes sure every bank movement shows up in the bank book.
Voucher types at a glance
| Voucher | When to use | Accounts touched | Supporting document | TallyPrime key |
|---|---|---|---|---|
| Receipt | Money comes in | Dr Cash/Bank; Cr party or income | Receipt, bank credit advice | F6 |
| Payment | Money goes out | Dr party or expense; Cr Cash/Bank | Bill, cheque counterfoil, payment advice | F5 |
| Contra | Money moves between own cash and bank accounts | Cash and bank only | Deposit slip, transfer advice | F4 |
| Journal | Adjustments with no cash or bank | Any non-cash accounts | Working note, approval | F7 |
| Sales | Goods or services sold | Dr customer or cash; Cr Sales, Output GST | Tax invoice | F8 |
| Purchase | Goods or services bought | Dr Purchases or expense, Input GST; Cr supplier | Supplier’s invoice | F9 |
| Debit note | Purchase return or price increase charged | Dr supplier; Cr Purchases | Debit note issued | Ctrl+F9 |
| Credit note | Sales return or price reduction allowed | Dr Sales; Cr customer | Credit note issued | Ctrl+F8 |
In Zoho Books, the names differ (Customer Payments, Bills, Expenses, Manual Journals, Transfer Fund), but the same logic applies.
How do you choose between a payment voucher and a journal voucher for the same vendor bill?
Ask one question: is cash or bank moving today?
- If yes, it is a payment voucher. It credits the bank, so the bank book and the bank reconciliation pick it up.
- If no, it is a journal voucher (or a purchase voucher if it is the bill itself). For example, recording TDS deducted on a contractor’s bill, or moving an amount from one expense head to another.
A common mistake is to book the bill and the payment together in a single journal: debit Expense, credit Bank. The books balance, but the supplier’s ledger never shows the bill, and the payment sits outside the normal payment series.
Worked example: a ₹36,000 vendor bill paid by cheque
A supplier sends a bill of ₹36,000 for housekeeping services on 2 July. You pay it by cheque on 18 July, and the bank debits the cheque on 21 July.
- 2 July, purchase voucher (or journal, depending on your settings): Dr Housekeeping Expenses ₹36,000, Cr Supplier ₹36,000. The supplier’s ledger now shows ₹36,000 payable.
- 18 July, payment voucher: Dr Supplier ₹36,000, Cr Bank ₹36,000. The supplier’s balance is nil, and the bank book shows a ₹36,000 cheque issued.
- 21 July, bank statement: shows a ₹36,000 debit. During reconciliation, you tick it against the 18 July payment voucher. Between 18 and 21 July it was an unpresented cheque.
Because the payment went through a payment voucher, it appeared in the bank book and could be ticked. Had it been buried in a journal against an expense, it might not appear where the reconciler expects it.
For simplicity this example leaves out GST and TDS; in real life, a housekeeping bill may carry both, and the TDS goes in the journal or purchase voucher, not the payment.
What happens to the entry when a voucher is altered or deleted?
When you alter a voucher, every report built on it changes: the ledger, the trial balance, the bank book and the GST reports. When you delete one, the entry vanishes from them.
Since 1 April 2023, Indian companies must use accounting software that keeps an edit log of every change, so the alteration or deletion is recorded with the user, time and old and new values. Even so, the safer habit is to correct a wrong voucher with a new entry and a narration, rather than edit or delete the original, especially after the month has been closed and reconciled.
Vouchers are what you tick against the bank statement
Every line on your bank statement should match a receipt, payment or contra voucher. A bank charge of ₹590 (₹500 plus 18% GST of ₹90) with no voucher, or a voucher with no bank line, is exactly what reconciliation is designed to find.