How to Create Purchase Requisitions

Written by patricia telesco
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How to Create Purchase Requisitions
Create detailed purchase requests for faster turnaround. (in office for computer image by Anatoly Minkov from Fotolia.com)

Purchase requisitions and purchase orders differ. The purchase requisition is the first step in the entire buying process. Companies have policies and procedures governing the information necessary on these documents, required signatures and spending limits.

When created properly, a purchase requisition gives the purchasing department authorisation for generating step two, a purchase order. Purchase orders go to vendors, permitting the order and delivery of the specified goods.

When a person incorrectly or inaccurately completes a purchase request it delays the entire process. To facilitate orders in a timely manner, make sure you follow your corporate guidelines in creating purchase requests.

Skill level:
Moderate

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Things you need

  • Detailed product descriptions
  • Product prices
  • Vendor name, address, phone number, and URL
  • Payment type
  • Billing and department codes

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Instructions

  1. 1

    Obtain and use the correct form. Many companies have different purchase requests for different functions. For example, they may have a preapproved purchase request that requires fewer, or only one, manager's signature as well as a purchase requisition for all other goods, one for contracting services and one for capital expenditures.

  2. 2

    Fill out product or services descriptions and pricing. Be descriptive and specific. For example, "office chair" doesn't provide enough information where as, "black office chair with adjustable arms and lumbar support" does. Note that any bid-out price requires attached bidding documentation for audit purposes.

  3. 3

    Provide vendor name, address, phone number and URL, if known. Some purchasing departments locate approved vendors or research pricing on unique products, so the vendor name may not be known. If that's the case you can leave that part of the purchase request blank, or write "to be determined" on that line.

  4. 4

    Indicate the payment type, such as check, charge, money order or vendor billing, and note the department or cost centre that will be charged. Finally, present the purchase request to individuals authorised for signing and approval before forwarding it to your business or purchasing office.

Tips and warnings

  • Companies have unique formats for purchase requests that reflect the industry and corporate focus. Find out the details required on your corporate PRs and if they're available online.
  • Review the information provided on the purchase request thoroughly before submission.
  • Get to know your company's purchasing policies and procedures before creating a purchase request.
  • Watch your budget, particularly for necessities. Submitting a purchase request that goes over budget results in denial or a long waiting period for receipt.
  • Follow the correct chain or authority for signatures/approvals or your request will be kicked back for revision.

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