what is purchase requisition

A purchase requisition is an internal document used by an employee to request the purchase of goods or services on behalf of their organization. It is the first step in the procurement process, where an employee creates a document to request internal permission to purchase goods or services. The purchase requisition form includes the applicable budget and purchase limits to inform the requestor before a purchase is made. Once the document is approved by the department manager, finance department, and is three-way matched, the actual purchasing of goods or services can now happen with the use of a purchase order. Purchase requisitions rarely leave the organization and are not a legally binding document. However, they provide internal control over the purchasing process, increase accountability and business security, and protect the organization from fraud. Purchase requisitions also help the purchasing department keep track of what’s been requested and avoid accidentally making multiple purchases for the same order.