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Purchase Requisition: Types, How It Is Made and Examples

 The purchase requisition form is the document generated by a user department or by warehouse personnel to notify the purchasing department of the items that need to be ordered, the quantity and the delivery time frame. Buying from a business begins with gathering requirements.


After they have been compiled, the purchasing department should be informed. The purchase requisition is the document that will contain the list of those requirements. To prevent fraud, department managers are generally not allowed to order directly from suppliers or to buy on behalf of the company.


Instead, it is a different department called the purchasing department that actually places orders with external vendors. The managers of the various departments use the purchase requisition forms to inform this department what materials need to be purchased.


Purchase requisitions and purchase orders are key documents in the process of acquiring the items that the company needs for its operation, standardizing the order process internally and externally.


Types

The key points about the purchase requisition are as follows:


- It is a request made to the purchasing department to acquire a certain list of materials.


- You need the approval of the purchasing organization.


- It is an internal document; that is, it remains within the organization.


You can create a purchase requisition for the following types of procurement:


Standard

To obtain supplies and materials from suppliers, both for production processes and office consumables and other assets.


Outsourcing

To supply raw material to a supplier, and thus later obtain a finished product.


Consignment

Obtaining material that is kept in the company's facilities and the supplier is paid for that.


Transf erence inventory

To obtain materials from another department or area that is within the same organization.


External service

To obtain the services of a third-party provider, such as performing plant maintenance.


As elaborated?

The basic components that make up a purchase requisition are:


- Number of the requisition, which allows the identification of the document. It must be pre-printed.


- Requesting department.


- Date of the requisition and requested delivery date.


- Name of the person who prepares the requisition and the signature of the person who carries out the corresponding authorization.


- The requested items must be described in detail, to avoid inaccurate data. The amount must be exact; it is very important to place the required unit (kilos, liters, units, etc.).


- Signature of the purchasing department manager who approves or does not approve the purchase.


- If quotes have already been requested from suppliers, they must be attached to the requisition.


Purchase requisition process

The purchase requisition process is used by organizations to place and track orders for supplies. These can be anything from raw materials to office furniture and more.


When a department manager believes that materials are running low, they fill out the purchase requisition form, which includes the fields listed above.


A purchase requisition is the form that a company department sends to the purchasing department, listing the items that it wants to be ordered from an external vendor.


This process allows users to place an order, receive supervisor approval, and most importantly, allow third-party vendors to submit price quotes.


When the purchasing manager receives the purchase requisition in this process, he can review all the information submitted by the originating user. The manager simply selects whether the requisition is approved or not.


If not approved, there is a box to put the reason for the decision and the requesting department will be informed about this decision. However, if the manager gives his approval, the next step will be to request a quote from the suppliers.


Importance

Start the purchase process

From time to time, the departments of a company will need materials; the purchase requisition initiates the purchase process. The purchasing department will act according to the strength of the document.


If there are any problems, the document will serve as evidence that a department ordered the supplies with a certain communication.


It is a control tool

Where there are no proper controls, staff may engage in fraud, as they may request materials for personal use.


With a purchase requisition there are measures in place to ensure that no fraud is practiced. The application must go through several hands to ensure its accuracy and necessity.


Protect the business

With the requisition orders implemented, the possibilities of fraud are avoided. Company assets are also protected.


Centralization of the purchasing process

When an organization requires that all requisitions be carried out centrally through the purchasing department, it is easy to manage the entire process.


Buyers benefit too, as they can now bundle purchases and leverage the purchasing power of the organization to negotiate better terms.



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