A purchase requisition is a formal internal document created by an employee or department to request the procurement of goods or services. It serves as the initial step in the procurement process, outlining the need for specific items, quantities, and estimated costs, and requires approval before a purchase order is issued. Purchase requisitions help organizations maintain control over spending, ensure compliance with policies, and streamline procurement workflows.
A typical purchase requisition includes:
Requisition Number: A unique identifier for tracking purposes.
Requester Details: Name, department, and contact information of the employee submitting the request.
Item Description: Specific details of the goods or services needed, including quantities and specifications.
Estimated Cost: Approximate price or budget for the requested items.
Justification: A brief explanation of why the purchase is necessary.
Preferred Supplier (if applicable): Suggested vendors or suppliers for the purchase.
Approval Fields: Space for authorized personnel to review and approve the request.
Date and Delivery Requirements: Desired timeline for receiving the goods or services.
Spending Control: Requisitions ensure purchases align with budgets and organizational priorities.
Approval Workflow: They enforce accountability by requiring managerial or departmental approval before procurement.
Compliance: Requisitions help adhere to internal policies and regulatory requirements, reducing unauthorized spending.
Process Efficiency: They provide a structured way to initiate procurement, minimizing errors and miscommunication.
Audit Trail: Requisitions create a documented record for financial tracking and audits.
Need Identification: An employee or department identifies a need for goods or services, such as office supplies, equipment, or consulting services.
Requisition Creation: The requester submits a purchase requisition, typically through an eProcurement system or manual form.
Approval: The requisition is routed to authorized personnel (e.g., a manager or procurement team) for review and approval based on budget, necessity, and policy compliance.
Purchase Order Generation: Once approved, the requisition is converted into a purchase order, which is sent to the supplier.
Fulfillment: The supplier delivers the goods or services, and the process continues with invoice matching and payment.
Prevent Maverick Spending: Requisitions ensure all purchases go through proper channels, reducing unauthorized or off-contract buying.
Budget Alignment: They help organizations stay within financial limits by requiring approval before spending.
Improved Planning: Requisitions provide visibility into upcoming purchases, aiding inventory and resource management.
Error Reduction: Detailed documentation minimizes mistakes in ordering the wrong items or quantities.
Transparency: Digital requisitions create a clear record of requests, approvals, and justifications for audits.
Time-Consuming Approvals: Lengthy approval processes can delay urgent purchases.
Manual Processes: Paper-based requisitions are prone to errors and inefficiencies.
Lack of Training: Employees may struggle with requisition systems if not properly trained.
Incomplete Information: Missing details, such as supplier names or cost estimates, can stall the process.
Resistance to Change: Staff may resist adopting digital requisition tools, preferring informal methods.
Modern procurement relies on eProcurement platforms like Lasso to manage purchase requisitions. These systems automate requisition creation, route requests for approval, and integrate with supplier catalogs and ERP systems. Digital requisitions enhance efficiency, provide real-time tracking, and support data-driven decision-making through analytics.
Adopt eProcurement Tools: Use digital platforms to automate requisition creation and approval workflows.
Standardize Forms: Ensure requisitions follow a consistent format with all required fields.
Simplify Approval Processes: Streamline workflows to avoid delays while maintaining oversight.
Train Employees: Educate staff on requisition procedures and the importance of compliance.
Monitor and Optimize: Regularly review requisition data to identify bottlenecks or opportunities for improvement.
Purchase requisitions are a foundational element of the procurement process, providing structure and oversight to organizational spending. By clearly documenting needs and requiring approvals, requisitions help businesses control costs, ensure compliance, and improve efficiency. In today’s digital landscape, leveraging eProcurement tools to manage requisitions is essential for streamlining workflows and staying competitive. A well-executed purchase requisition process sets the stage for successful procurement and supports long-term operational success.
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