Requisitions or purchases requisitions are forms of documents used when employees or leaders, need to request goods or services from the company. These types of documents are mainly used to inform the department leaders of the order. Once completed, it’s passed onto the finance team to coordinate and order the supplies needed. This can range anything from office supplies to healthcare supplies in the health field, to machines and equipment supplies.
Whether it’s office supplies, consumables, machines, or equipment, businesses need to follow the requisition procedure, to receive its money’s worth, and prevent fraud. While this process protects a business, the requisition order is also proof, an asset was ordered from the correct place.
When ordered, the procurement department does not order goods directly from the vendors, but rather, there has to be a formal purchase requisition form from a given department. In this case, one where a given supply will be used, and then an approval process is followed, giving the company internal control over the purchase requisition process. When requested, it must then go through several checks and requirements to ensure its accuracy.
The requisition document is important because it will later serve as evidence, communication was made, and it was taken down. When there are no proper checks or documents, this can lead the employees or managers to engage in fraud. This essentially is a control tool for auditing purposes, and to ensure a purchase cannot be initiated pretentiously.
When a requisition process is put into place, it makes the entire ordering process easier to take account and to manage the entire process. For the buyers, this now means they can order bundle purchases, and leverage the business organization’s buying power to negotiate better or more favorable terms. This will also play into something called a centralized purchase system, where it would hasten the procurement process, and lowering the department delays.
In conclusion, the requisition purchase as a control tool, and a fraud tool combined.