This article will define what a purchase requisition is, explain the benefits of them, and show you how to create and use a purchase requisition form properly.
A purchase requisition is an unofficial, internal document your company uses to inform your purchasing department about inventory or assets your company intends to buy. Chances are your business uses purchase orders to create an official contract between your company and the sellers and suppliers you purchase goods or services from. But before you create a legally-binding purchase order, your business might want to draft a purchase requisition for your purchasing department to approve. When you submit a purchase requisition form to your purchasing department, you create a paper trail that makes audits easier, reduces human error, and keeps budgets in check. These benefits can help save your business money, time, and stress. Purchase Requisition Definition
Purchase requisition vs. purchase order
A purchase requisition is quite different from a purchase order, even though they sound similar.
Notably, a purchase requisition is an internal document shared with your purchasing department. In contrast, a purchase order is a legally binding contract that your company submits to sellers when placing official orders.
What is a purchase requisition form?
A purchase requisition form is a template that allows employees to quickly create a purchase requisition to submit to your company’s purchasing department for approval. These purchase requisition forms can be a PDF, a spreadsheet, a print-out, or generated using business management software.
What information goes on a purchase requisition form?
Exactly what details your business requires on a purchase requisition form may vary, but most companies ask employees to complete the following fields:
- Name, department, and contact information of the requester
- The date and time of the request
- The exact products and services requested
- Detailed item descriptions, quantities, and prices of those items or services
- Why the purchase is required
- Business name and contact information of the supplier, vendor, or service provider
What should you do with a purchase requisition?
Once you’ve filled out a purchase requisition form completely, you should submit it to the correct department for approval. Usually, that’s a purchasing department, but this could be an accountant, your manager, or even the owner if you work at a smaller business.
Once the requisition has been approved, you’ll want to connect with your vendor, seller, or supplier. Most likely, you’ll make the order “official” by sending a legally binding purchase order.
Remember to keep both purchase requisitions and purchase orders on file for quick reference.
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