Purchase requisition
A purchase requisition is an internal document requesting that procurement acquire goods or services on behalf of the requester. Requisitions initiate the procurement process, capturing what's needed, why, and with what budget or authorization. Once approved through appropriate channels, requisitions convert into [purchase orders](/glossary/purchase-order) sent to suppliers.
Examples
Production material request: A production planner creates a requisition for 10,000 units of a component needed for next month's build schedule, specifying the part number, required delivery date, and work order to charge. The requisition routes to the planner's manager for approval before going to procurement.
Capital equipment request: An engineering manager submits a requisition for a new test system, including specifications, justification, vendor recommendation, and budget code. Given the dollar amount, the requisition requires multiple approval levels including finance and executive review.
Service request: A department head requisitions consulting services for a process improvement project, describing the scope, estimated hours, and preferred supplier. The requisition includes documentation of the competitive process already conducted.
Definition
Requisitions create accountability and control over organizational spending. They document who requested what, the business justification, budget authorization, and approval chain. This audit trail supports financial controls and helps prevent unauthorized purchases.
The requisition workflow typically includes requester submission, one or more approval levels based on dollar amount or category, and routing to procurement for supplier selection and PO creation. Well-designed workflows balance control needs against cycle time, avoiding bottlenecks that delay legitimate purchases.
Modern requisitioning systems often include catalog ordering for standard items, enabling requesters to select from approved suppliers at contracted prices. This self-service model speeds routine purchases while maintaining compliance.
Requisition data provides valuable information beyond individual transactions: demand patterns, budget utilization, approval bottlenecks, and user adoption of preferred channels. Analytics on requisition data can reveal improvement opportunities in both procurement and requesting department processes.
Frequently asked questions
What is a purchase requisition in simple terms?
A purchase requisition is an internal document requesting that procurement acquire goods or services on behalf of the requester. Requisitions initiate the procurement process, capturing what is needed, why, and under what budget or authorization, before any commitment is made to a supplier.
What is the difference between a purchase requisition and a purchase order?
A purchase requisition is internal, a request from an employee to procurement, while a purchase order is external, a formal commitment sent to a supplier. Once a requisition is approved through the appropriate channels, procurement converts it into a purchase order. The requisition seeks internal approval, and the PO creates the binding commitment.
Why do companies require purchase requisitions?
Requisitions create accountability and control over organizational spending by documenting who requested what, the business justification, budget authorization, and the approval chain. That audit trail supports financial controls and helps prevent unauthorized purchases.
What does a good requisition workflow look like?
The typical requisition workflow runs from requester submission through one or more approval levels based on dollar amount or category, then to procurement for supplier selection and PO creation. Well-designed workflows balance control against cycle time, avoiding bottlenecks that delay legitimate purchases. Catalog ordering for standard items lets requesters self-serve from approved suppliers at contracted prices while staying compliant.
What can requisition data tell you?
Requisition data reveals demand patterns, budget utilization, approval bottlenecks, and user adoption of preferred channels, beyond documenting individual transactions. Analytics on that data can surface improvement opportunities in both procurement processes and the requesting departments' own workflows.
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