On this page
- What a purchase requisition is
- Requisition versus purchase order
- The purchase requisition process
- What a good requisition form asks
- Approval limits that make sense
- Why requisitions get skipped
- What to do about emergencies
- Paper, spreadsheet or system
- Requisition rules for different kinds of purchase
- Questions approvers should ask
- Measuring the requisition step
- Example requisitions, good and bad
- Words you will hear
- Next steps
- Frequently asked questions
Key takeaways
- A purchase requisition is an internal request to buy. A purchase order is the external order sent to the supplier.
- The requisition collects what, how much, why and which budget, and routes the request for approval.
- Good requisition forms are short. Every extra field is a reason for someone to skip the process.
- Slow approvals are the main reason people buy outside the process. Fix speed first, then enforce the rule.
- Approval limits should scale with amount and risk. One rule for all purchases fails everybody.
Every purchase in a company starts with someone saying "we need this". What happens in the next ten minutes decides whether the company ends up with a controlled order or a surprise invoice.
The purchase requisition is the document, or form, or ticket, that turns that spoken request into a record. It is small, internal and easy to underrate.
What a purchase requisition is
A purchase requisition is an internal request from an employee or department asking the organization to buy goods or services. It states what is needed, the quantity, an estimated cost, who needs it and which budget will pay. It then goes to an approver. If approved, it passes to procurement, which turns it into a purchase order.
A purchase requisition is an internal document that requests approval to purchase goods or services, and it triggers the purchasing process once approved.
Requisition versus purchase order
| Purchase requisition | Purchase order | |
|---|---|---|
| Audience | Internal: requester, approver, buyer | External: the supplier |
| Purpose | Ask permission to buy | Place the order |
| Legally binding? | No | Yes, once the supplier accepts |
| Who creates it | The person who needs the item | The buyer in procurement or purchasing |
| Contains | Need, estimate, budget code, justification | Supplier, exact prices, quantities, delivery and payment terms |
The purchase requisition process
- Request. The requester fills in the form with what, how many, when needed, estimated cost and budget code.
- Review. The requester's manager or budget owner checks that the need is real and the budget exists.
- Approval. Higher amounts need more approvers, perhaps finance or a department head.
- Conversion. An approved requisition goes to procurement, which selects the supplier and creates the purchase order.
- Tracking. The requester can see the status: approved, ordered, delivered.
Notice what the process does not do. It does not slow the requester down if the form is short and approvers answer promptly. A requisition process that takes a week has failed at its job.
What a good requisition form asks
- What is needed. A clear description, not a product name alone.
- Quantity and unit.
- Estimated cost. A quote attached is better than a guess.
- Needed by date. And what happens if it is late.
- Budget code or cost center.
- Suggested supplier. Optional, with a reason if the requester wants a specific one.
- Business reason. One or two sentences.
- Is this a repeat purchase? If so, an existing contract might already cover it.
Resist the urge to add more. We have seen forms with 25 fields that nobody finishes. Our purchase requisition form template sticks to the essentials.
Approval limits that make sense
Approval rules should match risk. A flat rule, such as "everything needs the finance director", buries the finance director and trains people to avoid asking. A tiered rule is faster for everyone.
- Up to 500 dollars: the requester's manager approves.
- 500 to 5,000 dollars: the department head approves.
- 5,000 to 50,000 dollars: department head and finance approve.
- Above 50,000 dollars, or any new supplier with data access: finance, legal and IT security review as well.
The thresholds above are examples. Set yours by looking at the spread of your last 12 months of purchases, and aim for roughly 80 percent of requests needing only one approver.
The multi-level approval workflow page shows how to handle escalation and backups.
Why requisitions get skipped
People skip the requisition for the same reason they skip any process: it costs more effort than it seems to be worth. Four causes cover almost every case.
- The form is long or confusing.
- Approvals take days and nobody tells the requester where the request is.
- The requester does not see why the rule exists.
- Managers approve everything without reading, so the step feels like theater.
Each of these has a fix. Shorten the form. Show the status. Explain, in one paragraph, what the step prevents. And measure approver turnaround so slow approvers are visible.
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What to do about emergencies
Sometimes a pump fails or a server dies and the requisition cannot wait. Write an emergency route into the policy: a named person can approve verbally, the purchase goes ahead, and the paperwork follows within a set number of days. An emergency route with a short deadline is better than staff inventing their own. See emergency purchase workflow.
Paper, spreadsheet or system
A shared form and a mailbox suit teams of under ten who raise a few requests each week. Beyond that, status tracking and reminders matter. Purchasing software that includes requisition and approval, such as the tools in our procurement software category, gives you routing, limits and a searchable record without writing macros.
Requisition rules for different kinds of purchase
| Purchase type | What the requisition should add | Typical approver |
|---|---|---|
| Physical goods | Quantity, specification and delivery date | Budget holder |
| Software or subscription | Number of users, term, and a security check for data access | Budget holder, IT, finance for larger amounts |
| Professional services | Scope, rate, cap and the person who will manage the work | Department head, plus legal for larger scopes |
| Capital equipment | Business case, expected life and running costs | Finance and senior leadership |
| Travel and events | Dates, purpose and total estimate | Manager, within the travel policy |
Add the extra fields only for the types that need them. A form that shows software questions to someone buying pens is a form people stop using.
Questions approvers should ask
- Is the need real, and is it needed now?
- Do we already own or have a contract that covers this?
- Is the budget available in this code?
- Is the amount reasonable? Is a quote attached?
- Is the supplier approved, or does a new supplier need onboarding?
- Does it create a commitment beyond this year?
Six questions take about a minute. If your approvers cannot answer them from the request alone, the form is missing fields.
Measuring the requisition step
- Time to approval. Median hours from submission to final approval.
- Rejection rate. Very low can mean rubber-stamping. Very high can mean unclear rules.
- Requests with a complete form on first submission. Shows whether the form is understood.
- Requisition to PO time. How long procurement takes once approval is given.
- The form fits on one screen.
- Approval limits are written and tiered.
- Every approver has a named backup.
- Requesters can see status without asking.
- An emergency route exists with a deadline for paperwork.
- You know how you will measure time to approval.
Example requisitions, good and bad
"Need a new laptop. Urgent." This tells the approver nothing about cost, budget, who it is for or why now. The approver has to ask four questions before deciding, which adds a day.
"One 14 inch laptop for a new designer starting 3 November. Estimated 1,650 dollars including accessories, quote attached. Budget code MKT-210. Standard model from the preferred supplier." This takes the approver ten seconds.
Show the second example in your form instructions. Requesters follow examples better than rules.
Words you will hear
- Requester. The person who needs the item.
- Budget holder. The person responsible for the budget the spend comes from.
- Cost center. The accounting unit charged for the purchase.
- Catalog item. A pre-approved product at an agreed price, which often skips parts of the approval.
- Blanket approval. Standing permission for a set of repeat purchases within a limit.
Next steps
The next document in the chain is the purchase order. To see how the whole chain connects, read the procure to pay process. For policy on limits and exceptions, see the procurement policy guide.
Frequently asked questions
What is a purchase requisition?
It is an internal request from an employee or department to buy something. It states the need, quantity, estimated cost and budget, and it goes to an approver before procurement places the order.
Who approves a purchase requisition?
Usually the requester's manager or budget owner, with finance or senior leaders added as the amount rises. Your approval policy sets the exact levels.
What is the difference between a purchase requisition and a purchase order?
A requisition is an internal request for permission to buy. A purchase order is the external document sent to the supplier to place the order.
Is a purchase requisition necessary?
For anything beyond small, routine purchases, yes. It creates approval and budget control before money is committed, which is far cheaper than fixing a bad purchase afterwards.
Can a requisition be rejected?
Yes. Reasons include no budget, a duplicate request, an existing contract that covers the need or missing information. A good system tells the requester why.