Purchase Requisition
Definition
An internal request asking the procurement team to buy specific goods or services, which must typically be approved before it is converted into a purchase order.
In Practice
A purchase requisition is how demand inside the organization formally reaches procurement. An employee or a planning system specifies what is needed, how much, when, and which budget it charges. The requisition then routes through an approval workflow based on value and category before a buyer converts it into a purchase order to a supplier.
Requisitions create control and traceability. They separate the person who needs something from the person authorized to commit company money, which prevents unapproved spending and gives finance visibility of commitments before invoices arrive. In MRP-driven environments, planned orders serve the same role and are released into requisitions or POs automatically.
Example: a maintenance technician raises a requisition for a replacement gearbox costing 4,800 dollars. The maintenance manager approves it, procurement checks the preferred supplier contract, and a PO is issued the same day, leaving a clean audit trail from need to order.
Related Terms
A legally binding commercial document a buyer issues to a supplier specifying the items, quantities, prices, delivery dates, and terms of a purchase.
E-ProcurementThe use of electronic platforms to run purchasing processes, including requisitions, approvals, catalogs, purchase orders, and invoice matching, in a single digital workflow.
Maverick SpendPurchases made outside approved procurement channels or negotiated contracts, typically without a purchase order or authorized supplier.