Purchase Requisition: What It Is and How to Get It Right
A purchase requisition is the internal request that starts a purchase. Learn what to include, how approvals work, and how it differs from a purchase order.
Purchase Requisition: What It Is and How to Get It Right
Quick answer: A purchase requisition is an internal document an employee raises to request approval to buy goods or services. Once approved, it becomes a purchase order. It captures what is needed, why, how much, and the budget it draws from.
A purchase requisition ("PR") is the first formal step in buying. It is an internal request — the company approving itself to spend — before any commitment is made to a supplier.
What a good requisition contains
- Item description, quantity, and preferred specification
- Estimated unit price and total
- Cost centre or budget line
- Business justification
- Required delivery date
Why requisitions matter
Requisitions create an audit trail and enforce budget control before money is committed. They let approvers catch duplicate buys, off-contract spend, and out-of-budget requests early.
Requisition vs purchase order
| Purchase requisition | Purchase order | |
|---|---|---|
| Direction | Internal request | External commitment |
| Audience | Managers / finance | Supplier |
| Legally binding | No | Yes |
A clean requisition process feeds directly into stronger approval workflows and accurate spend analysis.
Related guides
Frequently asked questions
- What is a purchase requisition?
- It is an internal request raised by an employee asking for approval to purchase goods or services. It records the item, quantity, cost, budget line, and justification, and becomes a purchase order once approved.
- What is the difference between a requisition and a purchase order?
- A requisition is an internal request for approval and is not legally binding. A purchase order is the approved, external commitment sent to a supplier and is binding once accepted.
- Who approves a purchase requisition?
- Typically a line manager and/or finance, based on the amount and cost centre. Approval thresholds are defined in the company's procurement policy and enforced through approval workflows.