Journal voucher: recording adjustments your auditor can follow

A journal voucher is the document behind a manual journal entry: it records which accounts were debited and credited, by how much, why the entry was made, and who prepared and approved it. Most transactions reach the ledger automatically from invoices, bills and bank feeds. The entries that do not — accruals, corrections, reclassifications, depreciation — are exactly the ones auditors test, because they bypass the controls built into the normal flow. The journal voucher is what makes those entries explainable.

What a journal voucher should contain

• A unique voucher number and the accounting period it belongs to.
• The date prepared and the posting date.
• Each line: account code and name, debit or credit, amount, and cost centre where used.
• A narrative explaining the reason for the entry in plain words.
• Supporting evidence: a calculation, invoice, contract or email that justifies the amounts.
• Preparer's name and date, and approver's name and date.
• Confirmation that debits equal credits.

When a journal voucher is needed

1. Month-end accruals and prepayments that no invoice has yet triggered.
2. Depreciation and amortisation entries.
3. Corrections to entries posted to the wrong account or period.
4. Reclassifications between cost centres or departments.
5. Payroll journals where payroll runs outside the accounting system.
6. Intercompany recharges and allocations.
7. Any entry an auditor or reviewer could reasonably ask "why was this posted?"

Separate preparation from approval. A journal voucher prepared and approved by the same person has a narrative but no control — and unapproved manual journals are a classic audit finding.

Controls around manual journals

• Approval thresholds: higher-value or unusual entries need a more senior approver.
• Restricted posting rights for manual journals in the accounting system.
• Evidence attached before approval, not collected afterwards.
• A monthly review of all manual journals as part of the month end close.
• Particular scrutiny of entries posted after the period close or near year end.

Keeping journal vouchers organised

Ettex Books records journal entries with a narrative and attachments, so the voucher and its evidence live with the posting instead of in a separate folder. For teams that prepare journals in a spreadsheet first, the calculation can stay in Ettex Sheets and be attached to the entry. Either way, the aim is that anyone reviewing the ledger can open a manual entry and see the reason, the support and the approval without asking.

Journal voucher, payment voucher and debit note

The terms get mixed up. A payment voucher authorises a cash payment to a supplier; a debit note is sent to a supplier to request a reduction for returns or overcharges, often matched by a credit note from the supplier; a journal voucher records an internal accounting entry with no external party at all. They often touch the same accounts, but only the journal voucher explains an adjustment made inside the books.