A Purchase Requisition is a formal document used within an organization to request a specific good or service from the procurement department or another authorized department. It is typically the first step in the purchasing process. The requisition includes details such as the description of the required items, quantity, estimated cost, and date required.
The purchase requisition is usually sent for approval to a manager or other higher authority. Once approved, it is then used to issue a Purchase Order to the supplier for the requested items. It’s important to note that a purchase requisition is an internal document and is not sent to the supplier.
In a manual system, a purchase requisition might be a paper form, while in a computerized system, it could be a digital form within a procurement software system. In either case, the purpose of the purchase requisition is to create a clear and accountable record of what is being requested, why, and by whom, and to ensure that purchases are authorized before they are made.
Example of a Purchase Requisition
Let’s consider a hypothetical situation where a manager of an IT department in a company needs to purchase new computers for her team.
First, she would fill out a Purchase Requisition form that may include the following information:
- Requester: Jane Smith (Manager, IT Department)
- Date: August 7, 2023
- Item Description: Dell Inspiron Desktop Computers
- Quantity: 10
- Estimated Cost per Item: $1,000
- Total Estimated Cost: $10,000
- Date Required: August 31, 2023
- Purpose: To replace outdated computers in the IT Department
Once Jane completes the form, she would send it to the relevant authority for approval. This might be her own manager, the procurement department, or some other authorized person or committee within the company.
If the purchase requisition is approved, the procurement department would then issue a Purchase Order to the chosen supplier to order the computers.
The purchase requisition process ensures that the company maintains control over its purchases. It also provides a paper trail that can be used for auditing and budgeting purposes, to track where the company’s money is going, and to ensure that all purchases are authorized and necessary.