Which type of payment requires the creation of a purchase requisition?

The requirement for creating a purchase requisition typically applies to miscellaneous payments that are subject to the Prompt Payment Act (PPA) as well as those that are not. A purchase requisition serves as a formal request to procure goods or services, which is a necessary step in initiating payment for various types of expenditures.

For payments subject to PPA, the requisition ensures that all necessary documentation and approvals are in place, aligning with regulatory requirements that mandate timely payment to vendors while also maintaining accountability in how government funds are utilized.

On the other hand, even for miscellaneous payments not subject to PPA, a purchase requisition is valuable in tracking expenditures, ensuring proper controls are maintained, and providing a clear audit trail. This process helps ensure that all spending is authorized and aligns with budgetary constraints and procurement policies.

Thus, the creation of a purchase requisition is integral for both types of miscellaneous payments, underscoring the importance of establishing formal protocols even when specific regulatory guidelines like the PPA may not directly apply.