Enterprise Procurement Concepts, Explained » Procure-to-Pay (P2P) » Purchase Requisition

Purchase Requisition, Explained

2026-06-01 · 7 min read

A purchase requisition (PR) is an internal document an employee raises to request permission to buy goods or services, listing the items, quantities, estimated cost and budget or cost centre. It is an authorisation request, not an order — only once it is approved does it become a purchase order sent to a supplier.

What is a purchase requisition?

A purchase requisition is the internal request that formally starts the procurement cycle. Before any money is committed, the person who needs something records what it is, how much is required, an estimated cost and the budget or cost centre it should be charged to, then submits it for approval.

Crucially, a requisition is an internal control document — it never leaves the organisation. It exists so that spending is authorised and budgeted before a purchase order is created and sent to a supplier. This separation between requesting and ordering is a cornerstone of segregation of duties.

Who uses purchase requisitions?

Requisitions are raised by the frontline staff who identify a need — a technician needing spare parts, an office manager restocking supplies, or a project engineer ordering materials — and reviewed by the budget holders and finance approvers who authorise spend. They matter most in organisations large enough that the person requesting is not the person who controls the budget.

Why purchase requisitions matter

Without a requisition step, spending decisions are made informally and only discovered when the invoice arrives — by which point the money is already committed. The requisition moves the control point upstream, so budget, policy and necessity are checked before an obligation exists.

A structured requisition also creates the clean audit trail that everything downstream depends on: the purchase order, goods receipt and invoice all trace back to an approved request. Digitised requisitions with catalog-linked items further reduce errors and curb off-contract, maverick buying.

How it works

1. Raise the request

The person with the need creates a requisition, either by selecting items from a catalog or describing a free-text requirement, and specifies quantity, estimated cost, delivery need and the budget or cost centre to be charged.

2. Review and approve

The requisition routes to the appropriate approvers based on value, category or department. They confirm the need is genuine, the budget is available and the request complies with policy, then approve, reject or send it back for changes.

3. Convert to a purchase order

Once approved, the requisition is converted into a purchase order that is issued to the chosen supplier. The approved requisition remains on file as the authorising record behind that order.

Benefits

Spend is authorised and budget-checked before any commitment is made.
Segregation of duties between the requester and the buyer reduces fraud risk.
Catalog-linked line items cut specification errors and off-contract buying.
A clean audit trail links every PO, receipt and invoice to an approved request.
Aggregated requisitions reveal demand that can be consolidated for better pricing.

Frequently Asked Questions

What is the difference between a purchase requisition and a purchase order?

A purchase requisition is an internal request seeking approval to buy; it stays inside the organisation. A purchase order is the external, legally binding document sent to a supplier once the requisition is approved. In short, a requisition asks permission and a purchase order places the order.

What information does a purchase requisition contain?

A requisition typically lists the items or services required, quantities, an estimated unit and total cost, the date needed, the requesting department, the budget or cost centre to charge, and a justification. Preferred suppliers may be suggested, but the final choice is made when the order is placed.

Are purchase requisitions always required?

Not universally, but most organisations require them above a spend threshold to enforce budget control and segregation of duties. Low-value or catalog purchases are sometimes pre-approved, while higher-value requests always route through formal requisition and approval.

How Lapasar Mall requisition & approval delivers this

Lapasar Mall lets buyers raise catalog-based purchase requisitions that route through multi-step approval workflows with budgets and cost centres enforced before any purchase order is created.

Catalog-based requisitions with tiered wholesale pricing
Multi-step approval workflows by layer and value
Budget and cost-centre enforcement at submission
Requisition-to-purchase-order conversion
Role-based access control for requesters and approvers

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Related concepts

Procure-to-Pay (P2P) — The end-to-end operational buying cycle — from requisition and approval to purchase order, receipt, invoice matching and payment.
Purchase Order — The official, legally binding document a buyer issues to a supplier confirming what is being bought, at what price, in what quantity and on what terms.
Procurement Approval Workflow — The rule-based routing that sends a requisition or purchase to the right approvers before spend is committed.
Budget Management — The process of planning, allocating, tracking and controlling spend against budgets so purchasing stays within authorised limits.