A requisition is a formal request used within an organisation to obtain goods, services, or resources. It serves as an internal communication tool, ensuring that all requests follow proper approval procedures and are documented for accountability and efficiency.
Requisitions are essential for maintaining operational control and streamlining procurement processes.
What is a requisition?
A requisition is an official request submitted by an employee, department, or team to acquire materials, services, or resources necessary for business operations.
Key aspects:
- Serves as a formal internal request
- Ensures accountability and approval prior to purchase
- Can be used for both goods and services
- Acts as a precursor to a purchase order
Purpose of a requisition in business
Requisitions play a crucial role in business operations:
- Standardises procurement requests across departments
- Provides a clear audit trail for internal approvals
- Helps manage budgets and control expenditure
- Ensures timely acquisition of required resources
- Reduces errors and miscommunication in ordering
Types of requisitions in an organisation
Common types of requisitions include:
- Purchase requisition – Requests for materials or inventory
- Service requisition – Requests for external services or consultancy
- IT requisition – Requests for software, hardware, or technical support
- Maintenance requisition – Requests for repairs or upkeep of assets
Each type ensures that appropriate internal controls and approvals are followed.
Purchase requisition vs. purchase order
| Aspect | Purchase requisition | Purchase order |
|---|---|---|
| Purpose | Internal request to acquire goods/services | Formal order sent to a supplier |
| Initiator | Department or employee | Procurement team or authorised personnel |
| Legal status | Not a legal contract | Legally binding document |
| Approval | Requires internal authorisation | Confirms supplier agreement |
| Example | Request for 20 laptops | Official order sent to supplier for delivery |
What is process requisition?
A process requisition is a formal request to initiate internal workflows or operations, such as approvals, tasks, or resource allocations.
Key points:
- Streamlines internal processes
- Ensures accountability for assigned tasks
- Can trigger automated workflows in digital systems
- Maintains records for auditing purposes
Standardised requisition forms
Standardised forms help organisations maintain consistency and clarity in requests.
Benefits include:
- Reduces errors in submission
- Captures all necessary details (quantity, specifications, budget)
- Simplifies approval workflows
- Facilitates record-keeping and auditing
Example of a requisition
For example, the marketing department submits a requisition for office supplies:
- Requestor: Marketing Manager
- Item: 20 laptops, 50 office chairs
- Purpose: Team expansion and remote work setup
- Approval: Department head and finance team
- Status: Forwarded to procurement for purchase
This process ensures proper authorisation and tracking.
Who is responsible for requisitions?
Responsibility typically lies with:
- Employees/Departments – Initiate the request
- Managers/Heads – Approve requisitions based on necessity and budget
- Procurement team – Processes approved requisitions and converts them into purchase orders
- Finance team – Ensures budget availability and compliance
Clear responsibilities prevent delays and mismanagement.
Advantages of a formal requisition system
A structured requisition system offers multiple benefits:
- Ensures accountability and traceability
- Standardises the procurement process
- Prevents unauthorised purchases
- Streamlines approvals and resource allocation
- Supports budgeting and financial planning
Conclusion
Requisitions are essential for efficient and transparent procurement and resource management in any organisation. They provide a structured framework for requests, approvals, and tracking, ensuring operational efficiency.
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