A purchase requisition is an internal document submitted by an employee or department requesting approval to purchase specific goods or services. It is the formal starting point of the procurement process — the mechanism by which a need is communicated to the purchasing department and authorized by management before any commitment is made to a supplier.
How Purchase Requisitions Work
The requisition process follows a standard workflow in most organizations:
- Request submission — The requester identifies a need and submits a requisition form (paper or electronic) specifying what is needed, the quantity, estimated cost, preferred supplier (if any), required delivery date, and the budget or cost center to be charged.
- Approval routing — The requisition is routed through an approval chain based on the organization's procurement policy. Low-value requests may need only a supervisor's approval; high-value requests may require department head, finance, and executive sign-off.
- Procurement review — Once approved, the requisition reaches the procurement department. Buyers review the request, verify specifications, check for existing contracts or preferred suppliers, and determine the appropriate sourcing method.
- Sourcing and ordering — The buyer sources the goods or services — obtaining quotes, running an RFQ, or ordering from an existing contract — and converts the approved requisition into a purchase order (PO).
- Requester notification — The requester is notified of the order status, expected delivery date, and any changes from the original request.
Purchase Requisition vs. Purchase Order
These two documents are frequently confused but serve different purposes:
| Purchase Requisition | Purchase Order | |
|---|---|---|
| Direction | Internal (employee to procurement) | External (organization to supplier) |
| Purpose | Requests permission to buy | Commits the organization to buy |
| Legal standing | No legal obligation to any supplier | Creates a binding agreement with the supplier |
| Who creates it | The requester (any employee) | The procurement department or buyer |
| Approval | Requires internal approval before action | Issued after requisition is approved |
A requisition says "I need this." A purchase order says "We are buying this from you."
Why Requisitions Matter
Purchase requisitions serve as a control mechanism. They ensure that:
- Spending is authorized — No purchase is made without management awareness and approval.
- Budgets are checked — Finance can verify available funds before committing to a purchase.
- Procurement is involved — Buyers can leverage existing contracts, negotiate better terms, or consolidate similar requests across departments.
- Audit trails exist — Every purchase has a documented chain from request to approval to order, supporting compliance and financial controls.
Organizations that skip the requisition step often experience maverick spending, budget overruns, and difficulty tracking what was purchased and why.
Common Requisition Fields
A standard purchase requisition includes:
- Requester name and department
- Description of goods or services needed
- Quantity and unit of measure
- Estimated unit price and total cost
- Budget code or cost center
- Required delivery date
- Suggested supplier (optional)
- Business justification
How Buyer24 Helps
Buyer24 streamlines the steps that follow requisition approval. Once a purchase need is authorized, buyers use the platform to create and send RFQs, collect supplier quotes, and compare responses — accelerating the transition from approved requisition to informed purchasing decision. Get started →
FAQ
Can a purchase requisition be rejected?
Yes. Requisitions are commonly rejected for insufficient budget, incomplete information, unclear business justification, or because the item is available through an existing contract at better terms. The requester is typically notified of the reason and can revise and resubmit.
Do all organizations use purchase requisitions?
Most mid-size and large organizations use formal requisition processes. Very small businesses may use informal verbal or email requests. However, as organizations grow, the lack of a formal requisition process typically leads to spending control issues that drive adoption.
What is an emergency requisition?
An emergency requisition is an expedited request that bypasses the standard approval timeline — for example, when equipment failure requires an immediate replacement part. Most procurement policies define what qualifies as an emergency and require after-the-fact documentation and approval to maintain accountability.
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