Purchase requisition

A purchase requisition is a form filled out by an employee, requesting that the purchasing department obtain certain goods or services. The form includes information about the nature and amount of the items to be acquired, and when they are needed. In some organizations, the department manager must also sign the purchase requisitions being created by his staff, to indicate that they have been authorized. By doing so, a company can avoid making unnecessary purchases. The form is then sent to the purchasing department, which acquires the requested items.

Purchase requisitions are not usually used to order raw materials for the production process. Instead, the authorization to purchase these items comes from a materials management system, which derives the amount to be purchased by comparing the production schedule to on-hand amounts to determine the net balance required. Thus, a production system needs a more automated approach than the more haphazard ordering by departments that is typically routed through a purchase requisition.

Related Courses

Purchasing Guidebook