Every department in a company will inevitably need materials at some point - whether it is for office supplies, raw materials, equipment, or services. Direct ordering from suppliers by line managers or departmental managers can increase expenses and fraud cases. Staff working in good faith can sometimes violate budget limits or requirements without realizing they are doing so.
As a result, many companies make their purchasing processes easier with clear approval workflows. Implementing an effective purchasing process can help reduce unnecessary expenditures. It all begins with a Purchase Requisition.
Purchase requisitions are internal forms used by employees to order goods or services for their companies. Companies may need to purchase these items for business operations (such as office supplies), inventory, or manufacturing inputs.
Important Note: Creating a purchasing audit trail begins with the purchase requisition submission to the purchasing department. In order to get the requested goods or services, a purchase order needs to be approved by the purchasing department.
Here are the contents that Purchase Requisitions include:
Here you will see the specific stages of what the procurement workflow looks like:
We have prepared this flowchart for you to understand more easily how the Purchase Requisition process works.
The main benefit of Purchase Requisitions is that it is helpful for maintaining internal control over the purchasing process, preventing fraud, ensuring transparency, and creating an audit trail.
Here are more benefits of issuing Purchase Requisitions such as: