What is Purchase Requisition/Budget Management Module for?

What is Purchase Requisition/Budget Management module for?

The main purpose of the Purchase Requisition/Budget Management module is to help the facility manager and his/her team manage the building financial health status effectively yet ensure the upkeep quality of the building. Usually, this purchase requisition/budget management module will be managed by the Facility Manager together with other departments such as procurement and finance.

Budget & Expenses

Facility managers are able to create and manage the building budget for different expenditure types such as Opex – Preventive, Opex – Ad-hoc, Capex – Corrective even for the different trades. With the budget creation, the system will be able to assist one to keep track of it based on all the works that need to be carried out to maintain the building upkeep.

Facility managers can also register expenses in the system to deduct from the budget. Expenses are small spending that does not have an invoice or PO. An example will be Staff Welfare. With the expenses registered in the system, it will ensure the budget utilisation tracking to be accurate.

For step-by-step guides to adding and managing the Budget and Expenses on Purchase Requisition/Budget Management module, see Create and Manage Budget and Expenses.

Purchase Requisition (PR) & Purchase Order (PO)

Purchase Requisition (PR) can be raised by anyone in the organisation to request the purchase of goods or services on behalf of the company for business operations or inventory. With the purchase requisition being raised, it will kick off the purchasing process that will involve the procurement, finance department together with facility managers. There will be approval processes set based on transaction type depending on the company’s procurement policy.

Once the Purchase Requisition is being approved, either Letter of Award (LOA) or Purchase Order (PO) will be issued to the chosen supplier/vendor to confirm the purchase for the products or services stated in the PR. This will also lead to the budget utilisation for the related budget category that usually will involve the finance team to perform payment action.

For step-by-step guides to adding and managing Purchase Requisition (PR) and Purchase Order (PO) on Purchase Requisition/Budget Management module, see Create and Manage PR and PO.

Invoice & Credit Note

The invoice will be the billing received from the selected vendor/supplier for the respective PO. This is to ensure that the amount payable to the vendor/supplier tallies according to the LOA or PO that will always be required for approved PR and PO to close the procurement process.

Credit Note is a letter sent by the supplier/vendor to the customer notifying the customer that he/she has been credited a certain amount due to an error in the original invoice or other reasons. Upon receiving a credit note, the finance team or the facility manager will input it into the system. This will help to ensure budget utilisation accuracy.

For step-by-step guides to managing Invoice & Credit Note on Vendor & Contract Management module, see Manage Invoices & Credit Note.

More on this topic

• For step-by-step guides to using Purchase Requisition/Budget Management module, see Purchase Requisition/Budget Management Module.