If you are a business owner, you would want to control how money is spent on goods and services. You do not wish to run a system that you have no control over. Therefore, to manage and control your expenses, you need to institute a payment requisition process that mandates approval of requisition before payment to a service provider.
In simple terms, a useful payment requisition can be described as a document that allows individuals or departments within an organization to request payment to external service providers for supplied goods or services. Payment cannot be made to any vendor without approval from a procurement officer or unit, which ensures control of finances within an organization. Therefore, the main function of a payment requisition is to serve as a confirmation that a service provider has provided goods or services based on agreed terms.
Payment Requisition Fields
A valid payment requisition must contain some fields, which are usually filled with useful information. These fields are stated below.
- Vendor Information
- Purpose of Payment
- Currency Field
- Information on Who Created the Payment Requisition
- Information on Who Approved the Payment Requisition
The name of the vendor is provided, which is the same as that of the invoice from the vendor. Also, this same information is found in the “pay to” section of the payment requisition. Additionally, the vendor address is captured.
Purpose of Payment
Information on Who Created the Payment Requisition
Information on Who Approved the Payment Requisition
How To Create a Payment Requisition
A payment requisition is best created using specialized software applications that automatically populate most of the document’s fields. However, it can still be generated using standard word processing or spreadsheet applications by creating custom templates.
Developing a payment requisition involves the following processes.
- Create a Header
- Write Payee Information
- Input Justification and Delivery information
- Provide a Funding Source Information
Create a Header
Write Payee Information
You must provide the payee information, which includes name, address, and other relevant information. Payee information should be the same as that on the invoice. This field is created immediately below the header.
Input Justification and Delivery information
You must provide an apparent reason for payment in this field, which is usually written below the payee information field. Also, the requisition requester would have a field to write their name and sign accordingly.
Provide a Funding Source Information
The procurement officer or unit responsible for payment should have a space for their names and signatures. This field is usually provided as the last field on the payment requisition.
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Here’s the list of main invoice fields:
- Company information
- A unique identifier, date, and invoice number
- List of items and services
- Terms of sales
- List of fees
- Total due amount
Useful resources about invoices:
- How to Create an Invoice
- Tips to Customize your Invoice Templates
- Differences Between Bill and Invoice
- How to Create Invoice With/Without Logo
- How to Create Invoice With/Without Discount
- How to Create Invoice With/Without Tags
- Bill-Only Requisitions
- Payment Requisitions
- Purchase Orders
- PR vs PO
- Tax Invoice
- Chargeback Invoice