Cheque requisition

Cheque requisition
See also

Cheque requisition- this form is used to raise the cheque/ remittance advice when no goods are involved but legitimate expenses need to be paid. These expenses are usually services that are not contracted for, such as council and water rates, electricity, gas and service contracts, and that require annual or regular payments. The cheque requisition is also the source document used for cash advances from the cashier for travelling or accommodation expenses[1].

Documentary evidence of the reason for a payment, and the amount of the payment, are usually provided by a supplier's invoice. There will be some occasions, however, when a payment by cheque is required to pay for an item without evidence:

  • the invoice has not yet been received, and although an invoice/receipt will follow later, payment is required now
  • there will be neither an invoice, nor a receipt

The documentary evidence of the reason for and the amount of the payment can be obtained from the person who wants the payment to be made, by asking him or her to fill in a cheque requisition form[2].

Preparing a cheque requisition form

This is what should be done when preparing a cheque requisition form.

Action Comment
The form must be signed by a person who can authorise the payment This might be the advertising manager personally or his/her superior
The general ledger code is needed to record the payment in the accounts A code will be written on the either by the advertising manager or by someone in the accounts department
Supporting documentation should be attached In this case the fax requesting payment
The cheque, when it has been prepared and signed, will be sent to the person authorising payment This will be the advertising manager. In some organisations, the accounts department will only send the cheque to the payee direct
An invoice/receipt may follow Some organisations may insist on this

You might wonder what payments could possibly be made where an invoice or receipt will not be obtained eventually. There are few such cases: in many countries limited liability companies have to pay an annual legal free to the government. A receipt or invoice may not be provided for this[3].

Cheque Requisition Slip

Cheque Requisition Slip is a very important document as banks are issuing cheque book on receiving the same form their customers. In a number of frauds it was observed that the fraudsters got the cheque books issued from the banks after acquiring the cheque requisition slips of their customers and then fraudulently withdrew money. It is therefore necessary to protect and ensure the safekeeping of the cheque requisition slip. So whenever one gets a new cheque book it is very important to check that the cheque requisition slip is available in the cheque book. In case the cheque requisition slip is not available one must inform the bank immediately by email and also in writing[4].

Footnotes

  1. A. Trenerry 1998, p.120
  2. FIA Recording Financial Transactions 2013, p.170
  3. FIA Recording Financial Transactions 2017, p.167
  4. K. Mehta 2016, p.205

References

Author: Małgorzata Oleksińska