Question 1

What is a requisition order placed?

Accepted Answer

It is a document used to request the purchasing of goods or services on behalf of a firm, submitted by an authorized employee or department, and approved by the financial department.

Answer

It starts when a customer places an order and ends once they receive their package or service.

Answer

An organized and well-planned process for managing orders can do wonders for a business’ cashflow and inventory.

Question 2

Which the difference between purchasing order and requisition order?

Accepted Answer

The main difference lies in their nature. A requisition order comes before a purchase order in the purchase requisition process.

Answer

Is a document used to request the purchasing of goods or services on behalf of a firm, submitted by an authorized employee or department, and approved by the financial department.

Answer

Purchaser’s location and mailing address.

Question 3

Requisition order - vendor selection - purchase order - good receipt - invoice received - invoice reconciliation and payment is the P2P process flow?

Accepted Answer

Answer

<P>False</P>

Question 4

Why is a Purchase Requisition Order needed?

Accepted Answer

They are a second set of eyes on the money going out. This is an essential strategy for small businesses where every penny counts.

Answer

Because it is the process of deciding which customers to extend credit to and evaluating those customers’ creditworthiness over time.

Answer

It manages the function of granting credit terms and making sure money is collected when it becomes due.

Question 5

How to start the purchase requisition process?

Accepted Answer

With a purchase requisition or purchase request form.

Answer

Invoice reconciliation

Answer

Select products or services

Question 6

Name two components of a requisition order

Accepted Answer

Legal name of the outside supplier, Requested delivery date, Purchaser’s location and mailing address

Answer

Requested delivery date, Record to Report, Legal name of the outside supplier

Answer

Order to Cash, Expected price of purchase, Requested delivery date

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