Do you want to know everything about the purchase requisition? Then keep reading this article.
Various companies in industries make use of purchase requisitions to track company spending and employee product requests.
Purchase requisitions are internal documents that company employees use to request for their manager to purchase a product got this of the company.
However, anyone who is working in the office or needs supplies to complete their job responsibilities may need to know how to purchase requisition works.
In this article, you will learn what purchase requisition is, and every piece of information you need to know.
READ MORE: What is purchase requisition?
What Is a Purchase Requisition?
Table of Contents
This is the document that professionals draft to express a request for a specific supply. Also, these companies make use of these documents for internal purposes in the process of purchasing.
Employees send purchase requisition forms to the surviving manager or to the professional who handled the company budget.
Maybe this professional decided the company can afford the purchase and it is necessary, that they approve the request.
Moreover, it forms one of the first steps of the company’s procurement process. These documents precede purchase orders and are documents sent to external supply companies to buy a product.
Difference between Purchase Requisition and Purchase Order
The key difference between purchase requisitions and purchase orders is their purpose.
Moreover, purchase requisition forms are internal documents sent to supervisors for permission to buy something while professionals send external purchase orders to buy a product.
Also, another major difference between a purchase requisition and a purchase order is its components. Keep reading for a broad explanation of what professionals include in each of these documents:
Purchase Requisition
They create purchase requisitions to ask for permission to buy a specific product and to help keep a record of future spending.
These documents look like spreadsheets or professional invoices. Here are some of the components for the purchase requisition form:
- Product description and quantity
- Name of vendor
- Price
- Name and department of purchaser
Purchaser Order
Also, professionals submit purchase orders after their supervisor accepts their purchase requisition form.
These documents can have more specific information, as they’re official forms that signify a company’s intention to purchase the product. Purchase orders often include:
- Name of your company
- Name of the employee making the order
- Date of purchase order creation
- Quantity and price of goods
- Payment terms
- Signature of all involved parties.
READ MORE: Purchase Requisition vs Purchase Order: What’s the Difference?
Why is Purchase Requisition Important?
It is important because it allows companies to plan their procurement process and assess their supply needs.
Professionals make use of the internal document as an organizational tool as well as a method to track purchase requests.
Here are some reasons why it is important:
● Establishes a Secure Procurement Process
The purchase requisition form is the first step toward buying a necessary office supply. This step helps you to make sure your employees follow the necessary protocols when using company funds.
Moreover, it also reduces the risk to employees when using the company funds for unnecessary products.
● Helps To Keep Track of Purchases
These companies also usually have purchase orders to track their purchases, as it helps companies anticipate future financial responsibilities and predict trends of their expenditure.
For example, if the professional regularly submits a purchase requisition every few months for staples and office supplies, the supervisor who controls the department budget can recognize this pattern and set aside an appropriate amount of their budget for the purchase.
● Involving Employees in The Purchasing Process
Employees are always the ones to submit the purchase requisition, these documents help professionals feel more involved in the company expenditure.
Moreover, this gives physical proof of the employee inquiry and helps managers remember certain supply requests rather than relying on word of mouth for the purchase request.
How To Write a Purchase Requisition
Every company has its procurement process and protocol to create purchase requisitions.
Follow these steps to create a general purchase requisition form:
1. Find The Product You Want to Your Company Want to Buy
Professionals need to fill in various details for the purchase requisition form, it’s good to know new about the product and the vendor.
Also, research the vendor address and contact information as well as product price and quantity. When you get the correct information, it helps to make the procurement process efficient.
2. Make Use of a Purchase requisition Template
Also, you can create a purchase requisition form without one. This is an easy template. It allows you to fill in the information without stress about the format of the process.
Moreover, the practice saves your time and effort. To find a template, search for the downloadable document online.
3. Fill In Contact and Shipping Information
To begin your purchase order, you need to include the date you plan to submit your request both the address and contact information of the vendor and the location you would like them to ship the product.
The separate contains the delivery details like shipping method and expected time of arrival.
4. Add Product Information
Make sure you add the product information in the new section. Also, include the product name, and identification number on the vendor’s website, its price and quantity you need.
Moreover, when you need more than one product, consider listing the product in the same requisition form to save both you and your purchase requisition document should be included in all information your supervisor needs.
5. Write Product Notes
If applicable, make sure you write notes about the product. It can include the reason you want these products or the disclaimer about the shipping information.
Remember to make use of the section to give your supervisor detailed information they need to approve your requisition form.
READ MORE: What Is a Requisition, and How Does It Work?
Conclusion
The purchase requisition form may look like another form to fill out, this plays an important role in your company’s procurement process. It gives internal control over the purchasing process, prevents fraud, and creates an audit trail, that will help your process purchasing be streamlined and transparent.
