Final answer:
An open voucher represents an authorization for payment that is pending until goods or services are received, while a voucher payable indicates an existing obligation to pay for services or goods that have been received and is considered a current liability.
Step-by-step explanation:
Understanding the difference between an open voucher and a voucher payable is essential in the context of accounting and business finance. An open voucher refers to a document that authorizes payment and is held until the goods or services are received, and the voucher then becomes payable. At this point, the open voucher transitions to a voucher payable, which signifies that the product or service has been received and verified and that payment is now due to the supplier.
An open voucher is considered a 'pending' financial document that will become an actual liability once the conditions for payment are met. A voucher payable, on the other hand, represents a current liability — it indicates money that a company owes to its creditors and is often incorporated into the company's accounts payable system. The main difference lies in the fact that an open voucher is a preparatory stage before a formal commitment to pay, whereas a voucher payable is an acknowledgment of an existing obligation to pay.