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.

  1. Payment Requisition Fields
  2. How To Create a Payment Requisition

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

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

The purpose of payment must be captured, which can be in the form of a reference to an invoice. Also, it should be stated if items are purchased for supply to clients.

Currency Field

This field defines the currency of payment, which must correspond to the currency on the invoice.

Information on Who Created the Payment Requisition

The name and signature of the creator of the payment requisition must be present on the document.

Information on Who Approved the Payment Requisition

The procurement officer or department must sign and certify the payment requisition. The officer that signs the requisition must be different from its originator.

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

You should create a header that highlights the document as a payment requisition form.

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 field for funding source information must be generated. The ledger from which funds would be used should be clearly stated.

Approvals

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:

 

Useful resources about invoices: