Would you like more cost control? A purchase requisition that precedes the invoicing process ensures that expenses stay within budget and accounting processes are streamlined. In this article, you'll learn how procurement and invoicing processes can work together to increase efficiency.
Contents:
- What is a purchase requisition?
- Purchase requisition web form
- Purchase requisition approval workflow
- The relationship between purchase requisition and invoice processing
- Automatic invoice approval through document reconciliation
- In conclusion: From purchase requisition to payment
What is a purchase requisition?
A purchase requisition – or PR for short – is the beginning of a structured procurement process. It is used to gather all necessary information before an order is placed and must be submitted for approval. This creates transparency, enables early cost management and at the same time ensures that only authorized orders are placed.
Purchase requisition web form
Purchase requisitions can be easily processed by using a DocuWare form that employees can access by link. The form captures a variety of data, such as requester, department, cost center, project number, vendor/service provider, requested services or items with item numbers, quantities and prices. Any accompanying bids/offers can also be attached. Plus, information about a desired payment method or whether an advance payment is required can also be communicated.
Purchase requisition approval workflow
Once the form is submitted, the approval workflow starts. The responsibility for approving purchase requisitions can vary from company to company. In retail or larger organizations, the primary responsibility often lies with the purchasing department. In smaller companies, an approval is often given by a department head or someone in management. Purchase requisitions may go through several levels of approval. And in many organizations, approvals may be required only when a purchase order exceeds a certain pre-set limit.
The relationship between purchase requisition and invoice processing
A structured ordering process ensures precise and fast processing of downstream invoice processing. As soon as a new invoice is received, a DocuWare workflow checks whether a purchase requisition exists and links the documents. Thanks to the data already collected, it is possible to assign the invoice for approval or to initiate a direct release without any loss of time. If the invoice data is incorrect or there is no matching purchase requisition, the workflow informs the responsible persons about any required tasks.
Automatic invoice approval through document reconciliation
The ideal way to handle incoming invoices is with automated straight through processing – no need to waste time with the ticking off of individual invoice items.
This is made possible by an automatic reconciliation of all invoice items, which lines up the information from a purchase order and delivery note. If the items in all documents match, payment can be initiated without further approval loops.
In conclusion: From purchase requisition to payment
Seamless processing from purchase requisition to payment – also known as the purchase-to-pay process – is an important way to simplify and optimize purchasing and accounting processes at the same time. The latest version of DocuWare offers you flexible options to go from the purchase requisition with table fields to an approval workflow to the reconciliation of the invoice with various documents.
If you would like to add an order process to your invoicing process in DocuWare, your DocuWare contact will be happy to advise you. The same applies if you want to completely reintroduce the purchase-to-pay process to achieve more transparency, cost control and time savings.