Payment

In Business Multiple payments are made every day. For example, Payments are made for Salaries, Travelling and Other office expenses. Payments are also made towards buying assets for the business. Payments can be made towards a current expense, as an advance to a supplier or towards an outstanding supplier’s Invoice.

Payments are mostly made in cash, cheque or as Bank transfers. Every time a payment is made, A voucher must be prepared in the accounting software and be attested by the payee. This is to have proof of payment for audit and tax reasons.

There Are Three Types of Payment Voucher.

   1. Payment Against Invoice

   2. Direct Payment

   3. Advance Payment