Principles of Business

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  • Topic: Purchase requisition, Procurement, Purchase order
  • Pages : 4 (973 words )
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  • Published : October 6, 2011
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Summer-Jean Telfer

Principles of Business

4 central

Table Of Contents

(A) Business Documents

(1) Requisition - form issued by a using department to the supply or materials department requesting the acquisition of material not regularly carried in using department's normal stock; also called purchase requisition and stock requisition.

The Purchase Requisition Form in the procurement process plays an important role. It is a means whereby an employee of a company can request materials or equipment. Once the employee of the company has completed the Purchase Requisition and it has been authorized, they can then take it to the purchasing department for a Purchase Order to be created.

For Internal Use Only

The Purchase Requisition Order is only for internal use within an organization. It is in effect a method of ensuring that supplies and spending are carefully controlled. The purchase requisition is a formal way of issuing notice that material is required. Usually someone has to authorize a requisition so there is a clear indication of who wanted the item and who said that it could be purchased. This is important in terms of being an audit trail. If for example goods were repeatedly being ordered that were not actually needed, then the Purchase Requisition Orders could be checked to ascertain who had actually said that it was ok to make the purchase. This safeguards the company from any rogue orders and is a good way of ensuring that only necessary items are ordered.

Electronic Requisition Forms

Some organizations utilize technology to manage requisitions and the requisition form is electronic and is simply a way of improving efficiency, with the form being completed online and then sent off to the relevant person in the purchasing department.

Clear Directions to Purchasing Department

Although the use of Purchase Requisitions may seem slightly bureaucratic, they are very useful, not just in terms of the audit...
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