Purchase Requisition

A Purchase Requisition is a formal document used within an organization to initiate the procurement process. It serves as a request from a department or user within the organization to the purchasing or procurement department, indicating the need to purchase specific goods or services. The Purchase Requisition is typically the first step in the procurement workflow. Here are the details of what a Purchase Requisition usually contains, including key fields:

Purchase Requisition Details:

Requisition ID/Number:

• Description: A unique identifier assigned to each Purchase Requisition for tracking and reference purposes.
• Purpose: Helps in uniquely identifying and referencing the specific requisition in the procurement system.

Requester Information:

Fields:

• Requester Name
• Department
• Contact Information (Email, Phone)
• Purpose: Identifies the individual or department making the request for procurement.

Date of Request:

• Description: The date when the Purchase Requisition is created or initiated.
• Purpose: Provides a timestamp for tracking the timing of the procurement request.

Delivery Date/Required Date:

• Description: The date by which the requested goods or services are needed.
• Purpose: Helps in setting priorities and timelines for procurement fulfillment.

Item Details:

Fields:

• Item Description
• Quantity
• Unit of Measure
• Purpose: Specifies the details of the goods or services to be procured, including quantity.

Budget Code/Account Code:

• Description: The code associated with the budget or account from which the procurement costs will be allocated.
• Purpose: Ensures proper financial tracking and allocation of expenses.

Purpose/Justification:

• Description: A narrative explaining the reason for the procurement and why it is necessary.
• Purpose: Provides context and justification for the requested purchase.

Supplier Information (if known):

Fields:

• Preferred Supplier (if specified)
• Supplier Contact Information
• Purpose: Specifies the preferred supplier or provides information for potential suppliers.

Special Requirements/Specifications:

• Description: Any specific requirements or technical specifications for the requested items.
• Purpose: Ensures that the procurement department has clear guidelines for fulfilling the request.

Approval Workflow:

Fields:

• Approver Names
• Approval Status (Pending, Approved, Rejected)
• Approval Comments
• Purpose: Indicates the workflow for obtaining approvals from relevant stakeholders.

Attachments/Documents:

• Description: Space for attaching relevant documents or files related to the Purchase Requisition (e.g., quotes, specifications).
• Purpose: Provides additional information to support the procurement request.

Urgency/Priority:

• Description: Indicates the urgency or priority level of the procurement request.
• Purpose: Helps in prioritizing procurement activities based on the urgency of the request.

Cost Estimate:

• Description: An estimated cost associated with the requested procurement.
• Purpose: Provides an initial cost estimate for budgeting and financial planning.

Custom Fields:

• Description: Additional fields that can be customized based on the specific needs and requirements of the organization.
• Purpose: Allows flexibility in capturing unique information relevant to the Purchase Requisition.

Purchase Requisition Workflow:

Creation:

Users or departments identify the need for goods or services and create a Purchase Requisition.

Review and Approval:

The Purchase Requisition is reviewed by relevant stakeholders, and approvals are sought through the specified workflow.

Budget Check:

The procurement department checks the budget or account code to ensure availability of funds for the requested procurement.

Supplier Selection (if not specified):

If a preferred supplier is not specified, the procurement team may initiate the supplier selection process.

Validation of Specifications:

The procurement team validates the specifications and requirements outlined in the Purchase Requisition.

Approval Confirmation:

Approvers confirm their approval, and the Purchase Requisition is considered approved for further processing.

Conversion to Purchase Order:

The approved Purchase Requisition is used as a basis to create a Purchase Order for the selected supplier.

Communication with Supplier:

The Purchase Order is communicated to the selected supplier, initiating the procurement process.

Goods/Services Delivery:

The goods or services are delivered by the supplier based on the specifications outlined in the Purchase Requisition.

Invoice Matching:

The received goods or services are matched with the Purchase Order and supplier invoice for accuracy.

Payment Processing:

Upon successful verification, the finance department processes payment to the supplier.

Documentation Retention:

The Purchase Requisition, along with related documents, is retained for record-keeping and audit purposes. Effectively managing the Purchase Requisition process ensures that procurement activities align with organizational needs, budgets, and policies. It provides a structured approach to initiating, approving, and fulfilling procurement requests while maintaining transparency and accountability.