WHAT IS REQUISITION?

What is Requisition?

A requisition is a formal request generated within an organization, primarily directed to the purchasing or procurement department. This request is crucial for initiating the acquisition of goods or services and typically includes essential information such as item descriptions, quantities required, estimated costs, and justifications for the purchase. By defining the necessary steps and ensuring that purchases receive proper authorization, requisitions play a vital role in adhering to the organization's procurement policies.

Contents of a Requisition Form

A requisition form encompasses several key details that facilitate the procurement process. These details often include:

• Item or Service Description: Precise specifications of what is being requested.
• Quantity Needed: How many units are required.
• Estimated Cost: Approximate budget for the request.
• Delivery Date: When the items are needed by.
• Vendor Details: If applicable, information about the suppliers.
• Justification for Purchase: The purpose or necessity of the purchase.

Moreover, a requisition form typically collects information about the requestor and includes sections for approval from supervisors or other relevant authorities.

FAQs

What is a Purchase Requisition Form?

A purchase requisition form is a standardized document utilized within organizations to formally request the procurement of goods or services. It contains details about the item, including quantity, estimated costs, vendor specifics, and the rationale behind the purchase, acting as the initial step in the procurement process.

How a Requisition Works

The requisition process marks the beginning of the procurement workflow. When a department identifies a need for goods or services, a requisition form is completed with relevant details such as specifications and quantities needed. The form is then routed for necessary approvals, ensuring compliance with the organization's project budget and procurement policies.

Why Should You Enforce Requisition in Your Procurement Process?

Implementing requisitions within your procurement process serves multiple purposes:

• Alignment with Organizational Goals: Ensures that all purchases fulfill strategic objectives.
• Structured Approval Process: Establishes a clear hierarchy of authorization.
• Enhanced Cost Control: Aids in maintaining budgetary compliance.
• Promotes Transparency: Fosters accountability within financial processes, making the procurement procedure more efficient.

"A well-structured requisition system not only streamlines purchasing but also aligns expenditures with strategic organizational goals."

Conclusion

Requisitions are integral to the procurement process, offering a formal mechanism for requesting and authorizing purchases within an organization. By employing a thorough requisition strategy, organizations can enhance operational efficiency, manage budgets effectively, and ensure transparency in their procurement activities.

Explore more about requisition and procurement processes to optimize your HR and business functions!