PROOF OF DISCHARGE: CHARACTERISTICS, WHAT IT IS FOR, EXAMPLE - DUDAS - 2024

The proof of discharge is an accounting document that serves to record the payment of the different commitments that an economic entity acquires. These can be labor obligations, accounts payable to suppliers, business transactions, different operating expenses (stationery, services, etc.), advances, etc.

This document can be used as proof that a monetary transaction has taken place between two parties. In business, a receipt can be used for a variety of purposes: sometimes to substitute for cash in a transaction, acting as a receipt, or also to indicate that an invoice has been approved for payment.

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It is used to support the payment of a certain amount of money through a check. In general, in a company it is done in duplicate, in such a way that the original can be attached to the daily accounting voucher and the copy to be filed in the consecutive file.

In summary, this document is used to be able to record the operations corresponding to a payment with a check issuance. They are also called check policies. In turn, it is a document that helps a company to better control its expenses.

Characteristics of the proof of discharge

- Who makes it?

In general, the proof of discharge is prepared by the company, which makes a duplicate:

- The original receipt, which is kept by the company and which is used to attach it to the daily expense handled by accounting.

- The copy, for the consecutive file.

- Security

To keep track and avoid fraud, it is recommended that the proof of discharge be received and duly stamped by the beneficiary of the payment, although this is not a legal obligation.

To have greater control, a copy of the check is attached to the proof of payment, because the security is delivered to the beneficiary.

The accounting support must be recorded in a summarized and orderly manner, in such a way that the transactions that are carried out daily in a company can be clearly expressed.

- Payment Methods

The proof of discharge is prepared for all payments made directly by the company. In all business organizations, most payments are made in the following ways:

- Cash payment.

- Payment by checks.

- Payment for money orders or money orders.

- Payment made directly by the bank on behalf of business customers.

It can also be done by a third party on behalf of the company. However, in this case no proof of discharge will be made. For this type of transaction, a preliminary document will be prepared.

- Source documents

No voucher can be prepared without some source document available. These source documents are presented to carry out the proof of discharge.

Cash notes

Cash notes are proof of any material purchased for official purposes. It is a document similar to an invoice.

Receipts

Receipts are delivered by either service providers or people who receive payment from a company against their account.

In practice, when an organization purchases materials or services on a credit basis and subsequently makes the payment to suppliers of goods or services, it issues a receipt as proof of the payment made by the company.

The receipt is also proof of different types of deposits and advances, that is, security deposits, advances made, etc.

Details prepared by staff

There are many types of transactions against which the person who has spent the money cannot obtain receipts, invoices or cash notes. For this type of payment, the person must prepare a detail of the expense and be authorized by the competent authority, in order to make the payment.

For example, for transportation costs the staff cannot provide a receipt. Thus, there may be many other minor transactions against which no evidence is shown, except for details prepared by the staff.

What is it for?

The proof of discharge is important because it allows you to have the record and control of payments made by checks or cash, thus discriminating the way in which the payment was made, with the corresponding information.

The document records the amount paid, the date of issue and delivery, the name of the beneficiary to whom the payment was delivered, and the concept for which it was made.

Additionally, it is an excellent control mechanism in which the names are indicated with the respective signatures of the people who were involved in the payment. Not only the person who made the check and the receipt itself, but also the responsible person who made the review of it.

Most importantly, the proof of discharge reflects the name and signature of the person who authorized the payment, thus generating a total traceability of the settlement operations carried out.

On the other hand, the voucher allows you to place the corresponding data, such as the accounting account code, amount, concept, etc., to be able to subsequently record each payment in the accounting book.

Example of proof of discharge

Below is the image of a typical egress receipt, indicating the numbers in the different spaces the content to be placed in them:

- 1: The copy of the check will be reflected in this space when it is made, using carbon paper.

- 2: If a consecutive number is being carried, the corresponding number of the receipt is entered.

- 3: The code of the accounting account is entered according to the single chart of accounts.

- 4: The reason why the payment was made is indicated.

- 5: Amount of each payment made related to the voucher.

- 6: It is filled in only if there is any clarification to be made.

- 7: Final amount of the payment that is being made.

- 8: The number of the check with which the payment is made is indicated.

- 9: If the payment is made in cash, it is marked with an X. In this case, the spaces indicated in 1 and 8 will not be used.

- 10: If payment is made by check, the name of the bank corresponding to the check is entered.

- 11: The name of the branch of the bank that issued the check.

Control fields

- 12: Name of the natural or legal person to whom the payment is made.

- 13: Name of the person who prepared the receipt and the check.

- 14: Name of the person who reviewed the check and the receipt made.

- 15: Name of the authorized person who approved the check and the receipt.

- 16: Name of the person responsible for making the accounting record of the payment.

- 17: Signature of the person who received the check. If it is a legal person, it must also be duly sealed.

- 18: The identity document number of the person who received the check is entered. If you are a legal person, you must add the Nif number of the company.

- 19: Date of the transaction (day, month and year).

References

1. Sofia Orozco (2019). Disbursement voucher. Calameo. Taken from: es.calameo.com.
2. Accounting Excel (2019) applies. How to create a proof of discharge. Taken from: aplicaexcelcontable.com.
3. Business Dictionary (2019). Payment voucher. Taken from: businessdictionary.com.
4. S. Bansal (2011). Payment voucher. Learn Accounts. Taken from: letslearnaccounting.com.
5. Wiki How (2019). How to Make a Payment Voucher. Taken from: wikihow.com.