How to prepare Check Payment Voucher (CPV) and Petty Cash Payment Voucher (PCPV)

Virtual is well know by practical accountancy training in Ethiopia. Here are some ways of practical accounts technical document preparation.

Definition Check Payment Voucher
A Check payment voucher (CPV) can be a method of payment for services or goods. A CPV can also be
like a type of receipt or recorded proof that a payment has been made (just like a check stub).prepare before
check is prepared.
CPV preparation Steps
(Cashier)
1.Analyze the payment document
2.Write the payment date.
3.Write the name of payee.
4.Write amount in figure and words.
5.Write description/reason of payment made.
6.Write check number and bank name.
7.Write prepared by name of the cashier and signature.
Put paid stamp on source document and write CPV no. and Date.
Definition: - Check
A negotiable instrument drawn against deposited funds, to pay a specified amount of money to a specific
person upon demand.
Check preparation Steps
8.Write the payment date.
9.Write the name of payee.
10. Write amount in words and figure close to the amount box.
11. Fill the check stub date, name, and reason amount of this ck.
12. Write CPV no in red pen on Check stab
(Accountant)
13. Check the CPV and check accordingly and Code the journal entry with red pen.
(Finance Head and General Manager)
14. Managers checked and approved the payments and make a signature accordingly.
(Cashier)
15. Detach the CPV from its pad and supportive documents should attach with it forward to accountants
for posting.
Withholding Tax
Withholding tax is the current payments of income tax at time of goods imported and payments made on
account of goods and certain services.
Rates of withholding tax
On imported goods at 3% of the sum of cost, insurance and freight (CIF). On payments made to
taxpayers at 2% on cost of supply goods involving more than Birr 10,000 in any one transaction or
contract and services involving more than Birr 3,000 in one transaction or service.
In addition, a withholding agent who makes a payment to a person who has not supplied a TIN (Taxpayer
Identification Number) is required to withholding 30% of the amount of the payment.
A taxpayer who has not supplied the TIN to the withholding agent, in addition to the above 30% is liable
to pay a fine of Birr 3,000.00 or the amount of the payment whichever is less
1.Write the payment date.
2.Write the name of Tax Payer (Supplier/Vendor)
3.Write the TIN number and Tax Payer address.
4.Write the amount of good or service before tax.
5.Write 2% withholding amount for those who have TIN if doesn‟t have 30%.
6.Write the sales Invoice and check no.
7.Put signature and stamp of the withholding agent.
8.Distribution:-Original (Tax Payer)1 st Copy(Accounts)2nd Copy(Tax Authority)3rd Copy(Pad)

Petty Cash preparation Steps
(Cashier)
1.Analyze the payment document
2.Write the payment date.
3.Write the name of payee.
4.Write amount in figure and words.
5.Write description/reason of payment made
6.Write prepared by name of the cashier and signature.
7.Cashier fill petty cash sheet & detached.