Purchase requisitions (or PRs for short) are an essential part of any supply chain. In this article, we break down what a PR is, how it works, and answer other frequently asked questions.
A purchase requisition or purchase request (PR) is a form of approval required before making a purchase. It’s an internal document created by purchasers and sent to the department or individual that controls your organization’s finances. Purchase requisitions are often used to enforce spend controls – such as budget holder approvals or spend limits. Approvals can even differ based on the amount being spent or type of item being purchased.
Purchase requisitions are often required for purchases about a certain dollar amount. For example, let’s say you’re looking to purchase a forklift that costs over $30,000. If your organization requires a purchase requisition before placing your order, the flow of events could look like this:
Purchase requisition details vary depending on your organization and the type of item being purchased, but it typically includes:
Purchase requisitions and purchase orders are often confused, but they aren’t the same.
Purchase requisitions are internal documents created before receiving approval and placing an order.
Purchase orders are legally binding documents created by a buyer and issued to a seller after receiving approval to place an order.
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