A purchase requisition is an internal form an employee uses to ask for approval to buy something. Once it's approved, purchasing turns it into a purchase order for the supplier. Download the free purchase requisition form template in Excel, Word or PDF below. The Excel version totals your line items and estimated cost automatically.
- Requisition number, date requested, date needed and priority
- Requester, department and cost center / GL code / budget
- Suggested vendor and delivery location
- Business justification
- Line items with quantity, unit and estimated price, with automatic line and grand totals
- Approval boxes for the requester, department manager and finance
- Purchasing-use-only section for the PO number, PO date and buyer
What Is a Purchase Requisition?
A purchase requisition (sometimes called a purchase request) is the first step in a controlled buying process. An employee who needs goods or services fills one out with what they need, why, and roughly what it will cost. A manager, and for larger amounts finance, approves or rejects it before anyone commits company money with a supplier.
Purchase Requisition vs Purchase Order
| Purchase requisition | Purchase order | |
|---|---|---|
| Who it's for | Internal: requester, approvers, purchasing | External: the supplier |
| Purpose | Ask for approval to buy | Place the order and set terms |
| When | Before the purchase is approved | After the requisition is approved |
| Binding? | No | Yes, once the supplier accepts it |
| Template | This page | Purchase order template |
The Purchase Requisition Process
- Identify the need. An employee or department needs goods or services.
- Fill out the requisition with items, quantities, estimated cost, budget code and the reason for the purchase.
- Get approval. The manager and, above set amounts, finance approve or reject it.
- Issue a purchase order. Purchasing selects the supplier, often after a request for quotation, and sends a PO.
- Receive the goods, checking them against the PO and the packing slip.
- Match and pay. Accounts payable matches the PO, receiving record and supplier invoice (a three-way match) before paying on the agreed terms.
Tips for a Smoother Requisition Process
- Set approval levels by amount, so small purchases move quickly and large ones get a second look.
- Require a budget or cost center code so spending is tracked from day one.
- Number every requisition and reference it on the PO for a clear audit trail.
- Plan for lead times. Large or imported orders can tie up cash for months. Purchase order financing and vendor financing can pay suppliers while you wait to sell.
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Free templates: Price list template · Invoice tracker template · Purchase requisition template
Frequently Asked Questions
What is a purchase requisition?
A purchase requisition is an internal request from an employee or department asking for approval to buy goods or services. Once it is approved, the purchasing team issues a purchase order to the supplier.
What is the difference between a purchase requisition and a purchase order?
A purchase requisition is an internal document asking for permission to buy. A purchase order is the external document sent to a supplier to place the order. The requisition comes first.
Who approves a purchase requisition?
Usually the requester's department manager, and for larger amounts finance or a budget owner. Many businesses set approval levels by dollar amount.
What should a purchase requisition form include?
A requisition number, dates, who is requesting and for which department, the budget or cost center, a suggested vendor, delivery details, a business reason, the items with quantities and estimated prices, and approval signatures.
Is a purchase requisition legally binding?
No. It is an internal approval document. The purchase order, once accepted by the supplier, is what commits your business to buy.
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