Purchase request (or Purchase requisition) is among the things that can start a purchasing process. It is either automatically generated by a system or created by a specific worker in case he or she needs to order something. Before the order is placed, the purchase request must be approved. The purchase request approval can be made automatically (eg. as a result of some planning procedures) or manually, depending on the type of order.
What kinds of shopping request are typically created?
- Purchase requisition for replenishment (to replenish inventory) - generated automatically or created manually
- Purchase requisition due to maintenance (planned or predictive maintenance, repair, improvement)
- Purchase requisition for office equipment
- Purchase requisition machines and devices
- Purchase requisition for IT equipment (software, hardware etc.)
- Investment requisition
For example, purchasing requisitions generated automatically by a warehouse management system are also automatically approved by a specific software application; this results in automatic store replenishment. The purchase requisitions for a new keyboard or a replacement for a broken screen can be approved manually by a senior worker or someone who is responsible for the corresponding budget. In case the subject of the purchase requisition is something costly, the process is usually more complicated because it must go through the approval process by seniors who are in charge of the corresponding budget.
The purchase requisition approval is followed either by the purchase itself (for example when the supplier has been chosen and approved already) or by a selection process. The complexity of the approval process corresponds to the complexity of the company’s purchase approval processes, budget approval processes and the purchasing process itself.
What is usually included in the purchase requisition?
The purchase request is typically an internal/in-house document and should include the following:
- Subject of the request - description of what is to be ordered
- Reason for creating the purchase request - justification of need and purpose of purchase
- Specification of quantity and quality
- Specification of the timeframe - urgency and the date when the subject of purchase requirement is to be purchased or put into operation
- Estimated price or price range (if possible or if needed for approval or for launch of the selection process)
The purchase requisition should not include the supplier as this is, in most cases, the buyer’s decision.