Expense Voucher

About the expense voucher tool

How to record an expense voucher

1. 1

   Enter the payee

   In Paid to, type the shop, vendor or employee who received the money, or pick a saved party.

2. 2

   Categorise it

   Choose Category: Travel, Fuel, Food, Office supplies, Repairs, Utilities, Rent, Salary advance or Other. Fill Bill number from the paper bill.

3. 3

   Enter amount and mode

   Fill Expense amount and Payment mode (Cash, UPI, Bank transfer, Cheque, Card, Other), with the reference for digital payments.

4. 4

   Describe it

   Write a short Description, for example 'Diesel for delivery van, MH12AB1234'. Add approval remarks in Notes.

5. 5

   Create and review

   Click Create voucher. The entry appears in the expenses report; Download PDF and staple the original bill to it if you keep paper files.

What an expense voucher should contain

• Voucher number and date of the expense.
• Category of expense, kept consistent so reports are meaningful.
• Payee name and the bill or receipt number from the original document.
• Amount in figures and words, and the payment mode.
• Description with enough detail to justify the expense (vehicle number, trip, purpose).
• Name of the employee who incurred it and the approver's signature.
• Cash payments to one person above ₹10,000 in a day are disallowed under Section 40A(3) (₹35,000 for transport payments), so use bank or UPI for larger amounts.
• GST details if the bill is a proper tax invoice in your business's name and input credit is being claimed.

Who uses the expense voucher

Expense Voucher: frequently asked questions

What is the difference between an expense voucher and a payment voucher?

An expense voucher records a business expense, usually small and paid from petty cash or by an employee, and carries a category for reporting. A payment voucher records a payment to a vendor or party, typically against a purchase bill, and updates the vendor's ledger. Use expense vouchers for day-to-day spending and payment vouchers for settling bills.

What is the cash expense limit under income tax?

Section 40A(3) of the Income Tax Act disallows any expense above ₹10,000 paid in cash to a single person in a single day; for payments to transporters the limit is ₹35,000. Such expenses cannot be deducted from business income. Pay larger amounts by bank transfer, UPI or account payee cheque and note the reference on the voucher.

Which expense categories are available?

The Category field offers Travel, Fuel, Food, Office supplies, Repairs, Utilities, Rent, Salary advance and Other. Pick the closest one every time so the expenses report groups spending sensibly. Use the Description field for details such as the vehicle number or trip.

Do I need to keep the original bill?

Yes. The voucher is your internal record; the shop's bill or receipt is the evidence. Enter its number in the Bill number field, download the voucher PDF and file the paper bill with it, or photograph it and keep it in a folder named by voucher number. Income tax assessments can ask for supporting bills for several years.

Can I claim GST input credit on expenses recorded here?

Only if the expense is supported by a tax invoice in your business name with your GSTIN, and the expense is not a blocked credit under Section 17(5), which covers food and beverages, personal vehicles, club memberships and similar. Petty cash bills without your GSTIN do not qualify. Record the GST details in Notes and confirm eligibility with your CA.

Does an expense voucher feed a report?

Yes. Every expense voucher appears in the expenses report grouped by category and month, so you can see how much went on fuel, rent, repairs or travel and compare periods. Payment vouchers against purchase bills are tracked separately through the vendor ledger and payables statement.