Free Printable Purchase Requisition Form

Every organization needs a streamlined and efficient purchasing process to ensure the smooth operation of their business. One crucial aspect of this process is the use of a purchase requisition form.

In this article, we will explore what a purchase requisition form is, its importance for an organization, the difference between a purchase requisition and a purchase order, the steps involved in the purchase requisition workflow, the contents of a purchase requisition form, when it is needed, and how it can benefit your organization.

What Is a 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 firm. It serves as a formal request for the procurement department or management to authorize and initiate the purchasing process. The form typically includes details such as the item description, quantity, estimated cost, delivery date, and the justification for the purchase.

By using a purchase requisition form, organizations can establish a structured and controlled purchasing process. It ensures that all purchases are authorized, budgeted, and aligned with the organization’s objectives.

Purchase requisition form template featuring sections for item descriptions, quantity, budget codes, and approval signatures for internal purchase requests.
Sample Purchase Requisition Form

Purchase Requisition vs. Purchase Order: What is the Difference?

While a purchase requisition and a purchase order are both important documents in the purchasing process, they serve different purposes.

A purchase requisition is the initial step in the process. It is a request for the purchase of goods or services and is used to initiate the purchasing process. Once the purchase requisition is approved, it is then converted into a purchase order.

A purchase order, on the other hand, is a legally binding document that is sent to the supplier. It outlines the specific goods or services to be purchased, the agreed-upon price, terms of payment, delivery date, and other relevant details. The purchase order serves as a contract between the buyer and the supplier.

The Importance of a Purchase Requisition for an Organization

A purchase requisition plays a crucial role in the purchasing process of an organization. Here are some key reasons why it is important:

  • Control and Accountability: By requiring employees to submit a purchase requisition form, organizations can maintain control over the purchasing process and ensure that purchases are aligned with their budget and objectives. It also establishes accountability as employees must justify the need for the purchase.
  • Budget Management: Purchase requisitions help organizations manage their budget effectively. By reviewing and approving each request, management can ensure that funds are allocated appropriately and prevent overspending.
  • Streamlined Workflow: By following a standardized purchase requisition workflow, organizations can streamline their purchasing process. This ensures that all necessary approvals are obtained before proceeding with the purchase, reducing the risk of errors or unauthorized purchases.
  • Audit Trail: Purchase requisitions provide a clear audit trail of the purchasing process. In the event of an audit, organizations can easily track and review all purchase requests, approvals, and related documentation.
  • Supplier Relationship: By centralizing the purchasing process through purchase requisitions, organizations can develop stronger relationships with their suppliers. This allows for better negotiation of terms, pricing, and delivery schedules.

Steps in the Purchase Requisition Workflow

The purchase requisition workflow consists of several steps that ensure a smooth and controlled purchasing process. While the exact steps may vary depending on the organization, here is a general outline:

1. Purchase Requisition Submission

The employee initiates the purchasing process by submitting a purchase requisition form. The form includes details such as the item description, quantity, estimated cost, and the justification for the purchase.

2. Review and Approval

The purchase requisition is then reviewed by the appropriate personnel, such as the department manager or the procurement department. They evaluate the request based on factors such as budget availability, necessity, and compliance with the organization’s policies.

3. Budget Check

If the request is approved, the procurement department conducts a budget check to ensure that sufficient funds are available. If there are any budget constraints, alternative solutions may be explored, such as seeking additional funding or finding cost-effective alternatives.

4. Vendor Selection

Once the purchase requisition is approved and the budget is confirmed, the procurement department selects the appropriate vendor based on factors such as pricing, quality, reliability, and delivery schedules. They may also negotiate terms and conditions with the selected vendor.

5. Purchase Order Generation

After vendor selection, the purchase requisition is converted into a purchase order. The purchase order includes specific details such as the item description, quantity, price, terms of payment, and delivery date. It is then sent to the supplier.

6. Goods or Services Receipt

Upon delivery of the goods or completion of the services, the organization verifies the receipt and quality. This ensures that the items received or services rendered match the details specified in the purchase order.

7. Invoice Processing and Payment

Once the goods or services are verified, the supplier sends an invoice to the organization. The finance department reviews the invoice, verifies its accuracy, and processes the payment on time.

8. Record Keeping

Throughout the entire purchase requisition workflow, it is important to maintain proper record-keeping. This includes storing all relevant documentation, such as purchase requisition forms, purchase orders, invoices, and receipts. These records are essential for audit purposes and can provide valuable insights for future purchases.

9. Performance Evaluation

After the purchase is complete, organizations may conduct a performance evaluation of the supplier. This helps assess the quality of the goods or services received and the overall satisfaction with the supplier’s performance. The evaluation can inform future procurement decisions.

10. Continuous Improvement

Organizations should continuously evaluate and improve their purchase requisition workflow. This includes identifying bottlenecks, streamlining processes, and implementing best practices to enhance efficiency and effectiveness.

Contents of a Purchase Requisition Form

A purchase requisition form typically includes the following information:

  • Employee Information: The name, department, and contact details of the employee initiating the request.
  • Item Description: A detailed description of the goods or services to be purchased.
  • Quantity: The number of units or quantity required.
  • Estimated Cost: The expected cost of the purchase.
  • Delivery Date: The desired delivery date or timeframe.
  • Justification: A justification for the purchase, explaining the need and how it aligns with the organization’s objectives.
  • Account Code: The account code or department to which the purchase will be charged.
  • Approvals: The signature or approval of the appropriate personnel, such as the department manager or the procurement department.

When Is a Purchase Requisition Form Needed?

A purchase requisition form is needed whenever an employee wishes to purchase on behalf of their organization. Here are some common scenarios where a purchase requisition form is required:

  • Office Supplies: When an employee needs to purchase office supplies such as stationery, printer ink, or furniture.
  • Inventory Replenishment: When the stock of certain items reaches a predetermined threshold and needs to be replenished.
  • Manufacturing Inputs: When materials or components are required for the manufacturing process.
  • Equipment or Machinery: When new equipment or machinery needs to be purchased for business operations.
  • Services: When professional services such as consulting, maintenance, or repairs are required.
  • Marketing and Advertising: When promotional materials or advertising services need to be procured.
  • Travel and Accommodation: When employees need to book travel tickets or arrange accommodation for business purposes.

Using a purchase requisition form in these situations ensures that all purchases are properly authorized, budgeted, and aligned with the organization’s objectives.

Free Purchase Requisition Form!

Get our purchase requisition form in Excel to streamline your procurement process. This form allows you to quickly request and track purchases, ensuring efficient approval workflows. With customizable fields for item details, quantities, and costs, it helps maintain organized records for your business.

Simplify your purchasing process—use this essential template today and take control of your inventory management and approval system.

Purchase Requisition FormExcel

Eirdis Pallas
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