A purchase requisition is an internal document an employee uses to ask for permission to buy something. It never goes to the supplier. It describes what is needed, how many, the estimated cost, a suggested supplier, the budget or cost center it will be charged to, and why it is needed.
Once approved, the requisition becomes the basis for a purchase order, which is the document the supplier actually receives.
Why it matters
The requisition is where spending is controlled, because it is the last point before the company commits money. It gives the budget owner a chance to say no, and it gives purchasing a clean, approved list of what to buy instead of a stream of hallway requests.
Example
Maria in marketing needs ten monitors at about $300 each (illustrative). She submits a requisition for $3,000 charged to the marketing budget. Her manager approves it, purchasing compares two quotes, and issues a purchase order to the cheaper supplier.
Common pitfalls
- After-the-fact requisitions. The item was already bought, and the requisition is filed only so the invoice can be paid.
- Vague descriptions. "Office stuff, $800" cannot be checked against a budget or a quote.
- No budget check. Approvers see the request but not what is left in the budget.
- Buying before the approval comes back, usually because the approval takes too long.
Many small companies combine the requisition and the purchase order into one flow. That works well as long as approval happens before anyone places the order.