Small businesses usually launch with a shoestring budget. Therefore, it becomes necessary to control costs for the long-term benefit of the company. A way to cut expenses moreover encourages responsible spending tends to be to create an internal requisition process, particularly for all new purchases.
What is a Purchase Requisition Form?
This is an internal document which employees employ to request the buying of a certain item. The employee will describe the product as well as why it is required. The form is then delivered to other people and departments in the company for review, along with approval.
What to Include in a Purchase Requisition Form?
The requisition process tends to be an internal one. It varies between companies. But a typical purchase requisition form process may be like the following:
- An employee requires something- Say, for instance, an employee requires a new laptop. They will get a requisition form. They will then describe the laptop that they want. If necessary, they will explain why they require it.
- Signature from department head– After the above has been done; the employee will ask the department head if they could sign the requisition form.
- Next department– When the supervisor has signed the form, this may then proceed to the IT department. Over here, the specialists will see if the laptop is actually compatible with the business’s systems. It should also meet data security standards.
- Purchasing department– After IT approval, the requisition then goes to the buying department. The department staff will source the laptop from among some retailers and select to buy it from the one which gives the best price. When one has been found, then the purchasing department will give a purchase order specifically to the vendor.
- Professional document– From the above, it can be seen that the Purchase Requisition Form needs to be made professionally so that it can be considered. Everything needs to be stated clearly, allowing your employer to understand everything properly. You need to convince them that what you want will benefit the company.
Advantages of the Purchase Requisition Form:
- Gives transparency as the requisition process needs employees and supervisors to justify any purchase. The process of stating why a certain product is required can limit unnecessary purchases. This can minimize overspending on expensive products when something less expensive can be suitable.
- Some products, like software electronics, can be incompatible with companies’ present equipment and systems. Due to the fact that the heads of other departments need to sign the purchase, a business limits the need to have to return some product if it is later found that it is not good for the company.
- The purchasing departments can form relationships with vendors and get good deals.
A purchase requisition form is an important document that needs to be made with care. You need to research on the benefits of the product you require so that you can convey this to your employer. The form should be clear so that everything can be understood.
Format: Excel 2007/10
File Size: 94 KB