What is a Purchase Requisition?

Definition: A purchase requisition form is a document used by a department to request that the purchasing department order materials or merchandise. In other words, this form is used by departments to notify the purchasing department that raw materials are needed for production or merchandise is needed for the sales floor.

What Does Purchase Requisition Mean?

To prevent fraud, department managers aren’t typically allowed to place orders directly with vendors and supplies on the company’s behalf. Instead, a different department creative named the purchasing department actually places the orders with the third party vendors. The purchase requisition forms are used by department managers to inform the purchasing department what materials are needed.

When a department manager sees that materials are running low, he or she fills out a requisition form that includes a date, the manager’s name, quantity, model numbers, details about the order, and the vendor. The requisition form is only one step in the ordering process of a voucher system. Let’s look at a short example of how one of these systems work.


First, a department that needs to order materials creates a purchase requisition form. This form notifies the purchasing department that supplies are needed. The purchasing department can approve, alter, or deny the request from the other department. If the order is approved, the purchasing department will create a purchase order.

This order form is sent to the vendor notifying them that the buyer wishes to purchase goods. If the vendor accepts the order, it produces and delivers the goods with an invoice. The receiving department unpacks the goods and delivers the receiving report to the accounting department who already has the invoice and purchase order. When all of these documents agree, the accounting department can issue an invoice approval notice to the cashier indicating that a payment can be made to the vendor.

I know. This seems like a long tedious process. It is, but it is put in place to prevent fraud purchases and protect the company assets from improper ordering.