Requisition

A requisition is essentially the first step in the procurement cycle. It's a document, either physical or electronic, that outlines what is needed, the quantity, and often a justification for the purchase. Without a properly submitted and approved requisition, a purchase order should not be issued.

The primary importance of a requisition lies in its ability to control spending and maintain budgetary discipline. By requiring departments to formally request items, organizations can track expenses against allocated budgets and prevent unauthorized purchases. This helps in financial planning and forecasting.

Requisitions are typically submitted to a designated approver, such as a department head or purchasing manager. This approver reviews the request to ensure it aligns with the organization's needs, budget, and policies. The approval process is crucial for maintaining financial accountability.

Modern requisition systems are often integrated with Enterprise Resource Planning (ERP) systems. This integration allows for seamless flow of information, automated approvals, and real-time tracking of the requisition status. It also reduces manual errors and improves efficiency.

The information included in a requisition typically includes the item description, quantity, unit price, supplier information (if known), delivery date, and the department requesting the item. A clear and detailed requisition minimizes errors and ensures the correct items are purchased.

The use of requisitions has evolved over time. Initially, they were primarily paper-based documents, but with technological advancements, electronic requisition systems have become the norm. These systems offer improved efficiency, transparency, and control over the procurement process.

Different types of requisitions exist, depending on the nature of the purchase. For example, there might be separate requisition forms for capital expenditures, routine supplies, or services. Tailoring the requisition process to specific needs improves accuracy and streamlines the approval workflow.

Failure to properly manage requisitions can lead to several problems, including overspending, unauthorized purchases, and delays in obtaining necessary goods or services. Therefore, organizations must establish clear requisition policies and procedures and ensure that employees are properly trained on their use.