A purchase requisition (PR) is a formal request from an employee or department within an organization to purchase goods or services from an external supplier. The PR details the item or service to be purchased, the quantity required, the estimated cost, and any other relevant information the supplier may need to provide a quote or fulfill the request. A PR can be in physical and electronic form based upon an organization's procurement process and systems. The PR serves as an internal authorization to make the purchase following sign-off from an authorized budget holder and initiates the procurement process.
The PR is typically submitted to the organization's procurement or purchasing department, which is responsible for reviewing and approving the request. Procurement may review the requisition for accuracy, completeness, and compliance with the company's procurement policies and procedures. Once the requisition is approved, it is used to create a purchase order, which is sent to the supplier to initiate the purchase transaction. In the case of electronic PRs, many of these processes are automated.
PRs are an important tool for managing procurement and ensuring that purchases are made in a controlled and efficient manner. They help to ensure that the purchases are made within the spend management principles set by the organization.