In procurement, a requisition is a request for services or goods by an employee to the person or department in a company that is responsible for purchasing and stores management. When (or if) the request is approved, a purchase order is raised in favour of a supplier for the services or goods. Ideally, a business aims to raise Purchase Order(s) for the right (compliant) product and/or service from the best supplier according to the following criteria, in no particular order: Price, availability and payment terms

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Requisitions are usually submitted in a standardized format in paper form or through e-procurement software (such as Tradata) that automates, streamlines and optimizes the procurement process. Such a form typically includes details about the items requested, the date of the request, the individual and department making the request & the delivery location.

Now, there are different types of requisitions which all have different uses. These include, but are not limited to:

1. Standard Purchase Requisition/ (OPEX Requisition)

This is a basic type of requisition usually used for routine administration and operating expenditure. This expenditure is usually budgeted for purchases that are capped with limits the department can spend at any given time.

For information on budgeting Read our blog on Realtime Budget Tracking

For this type of requisition, often a minimum amount of information is required to process the request.

2. Capital Expenditure (CAPEX) Requisition/ Pre-approved Purchase Requisition

Used for high-value purchases that require more of the business’s stakeholders involved in the process and greater scrutiny. These purchases are usually Assets of the business that have an anticipated Return on Investment (ROI). This type of requestion often requires much more information than the standard purchase requisition, such as a detailed description of the item being purchased, warranty details, the estimated value of the purchase, & why the purchase is deemed necessary.

3. Contractual Purchase Requisition

This is used when procuring goods or services from a supplier under contract. It includes information such as the supplier’s name, contact number, contract reference number, terms of the contract, and contact expiration date.

4. Cash Requisition

Used to track and authorize the withdrawal of funds from a company’s petty cash account. These requisitions are capped by the limits a department can request. Usually, an organization's procurement policy clearly articulates the goods, services and parameters when a cash requestion can be raised. The form records the amount of cash being requested, the withdrawal purpose, the person responsible for the funds and a reconciliation of the funds disbursed.

5. Stores Requisition

Is used when an employee or department make requests for goods that are currently being held in stock/ warehouse. Usually, organizations buy routine goods such as paper, pens etc. in bulk to unlock discounts and manage the usage through the stores department thereafter. Stores requisitions are passed through or integrated with an organization’s cost accounting system to charge the cost of the goods, track inventory and determine closing stock which is used to calculate the Cost of Goods Sold and Gross Profit for trading businesses.

6. Item Requisitions

When someone requires some goods or services but isn't too concerned about where those goods come from, they use item requisitions. Simply said, the requisitioner is stating, "I need this list of items." Depending on the items they request, some may be sent to the stock room to be filled from inventory, while others may be changed into purchase orders or other procurement papers to be sourced from a supplier.

7. Expense Reimbursement Requisitions

These are used when someone needs to be paid back for something they purchased with their own money.

8. Change Order Requests

A Change Order Request is used to record an amendment to an employee or department’s original goods or services request. Its purpose is to create a record of added services.

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