Receipt Voucher
What is a receipt voucher?
A receipt voucher is a document issued by a business to record and acknowledge the receipt of money from a customer, supplier, or other party. It confirms that a specific amount has been received, states the reason, and identifies the paying party.
Receipt vouchers are used across accounting and Indian GST practice. In accounting, a receipt voucher records inflows such as customer payments, loan disbursements, and other receipts. Under GST law, a receipt voucher is a specific document issued when an advance is received against a future supply.
Why is a receipt voucher important?
Receipt vouchers ensure that every inflow of money into a business is properly recorded, acknowledged, and supported by evidence. They are essential for cash flow tracking, customer account reconciliation, and internal control.
Receipt vouchers are also central to compliance. Under GST law, a receipt voucher must be issued for advances received against future supplies, capturing the tax that will apply. Auditors, tax officers, and management rely on receipt vouchers to verify collections, match ledger balances, and maintain a clean audit trail.
How does a receipt voucher work?
1. Identifying the receipt
The business identifies an incoming payment, whether it is a customer settlement, an advance, a loan disbursement, or another type of receipt.
2. Preparing the receipt voucher
The accountant prepares the receipt voucher, capturing the date, amount, payer name, mode of payment (cash, cheque, NEFT, RTGS, or UPI), and the reason for the receipt.
3. Attaching supporting evidence
Supporting documents such as bank credit advices, cheque copies, or UPI transaction references are attached to the voucher as evidence.
4. Authorising the receipt voucher
The voucher is reviewed and authorised by the accountant, manager, or business owner before it is posted to the books.
5. Posting to the books of account
Once authorised, the receipt voucher is used to record the corresponding entry: a debit to Cash or Bank and a credit to the customer's account or the relevant income or liability account.
Example
A digital marketing agency in Kochi receives an advance of ₹1,50,000 from a new client for a three-month retainer, credited to its bank account by NEFT. The accountant prepares a receipt voucher recording the date, client name, amount, mode of payment, and purpose (advance for service contract).
Because the advance relates to a future supply of services, a GST receipt voucher is also issued, capturing the applicable CGST and SGST at 9% each. The bank credit advice is attached as supporting evidence.
The receipt voucher is authorised and posted in TallyPrime. The Bank account is debited by ₹1,50,000, the customer's account is credited, and GST liability on the advance is recognised in the appropriate ledger.
Key points to remember
- A receipt voucher is a document that records and acknowledges the receipt of money by a business.
- It captures the date, amount, payer, mode of payment, and reason for the receipt.
- Under Indian GST law, a specific receipt voucher must be issued when an advance is received against a future supply.
- Receipt vouchers are supported by bank credit advices, cheque copies, or UPI references.
- Once authorised, the receipt voucher forms the basis for the corresponding accounting entry.
- Receipt vouchers are typically prepared through accounting software such as TallyPrime.
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A receipt voucher records money coming into the business. A payment voucher records money going out of the business. Both are types of accounting vouchers but relate to opposite directions of cash flow.
Under GST law, a receipt voucher must be issued when a business receives an advance payment against a future supply of goods or services. It captures the taxable value, applicable GST rate, and tax amount that will apply.
Yes. An invoice records the supply of goods or services and demands payment. A receipt voucher records the actual receipt of money against a supply or as an advance. Both documents serve different purposes and are usually retained together.
A GST receipt voucher must include the supplier's name, address, and GSTIN, a serial number, the date, the recipient's details, description of the supply, applicable tax rate, tax amount (CGST, SGST, or IGST), and place of supply.
In accounting software such as TallyPrime, a receipt voucher is recorded through a dedicated receipt voucher entry screen. The entry debits Cash or Bank and credits the customer's account, an income account, or a liability account, depending on the nature of the receipt.
