Skip to content

What is a purchase requisition form?

Written by

Last editedApr 20202 min read

If your business is on a tight budget, dealing with cash flow issues, or you’re simply vigilant against needless purchases, implementing a requisition process can help encourage responsible spending and cut unnecessary expenses. Purchase requisition forms are an important element of the requisition process. Find out more about the importance of requisition forms, starting with our purchase requisition definition.

Purchase requisition definition

Purchase requisition forms, also referred to as purchase requests or PR, are internal documents used to request the organisation to make a purchase. Put simply, the requestor will use a requisition form to describe what the purchase is and why it’s necessary. After the form is submitted, it will be sent to another person within the organisation, such as a department head, who’ll review the purchase. If the purchase is denied, the approver will provide an explanation, and if it’s approved, the purchase requisition form becomes a purchase order (PO) which is sent off to a vendor.

How does the requisition form process work?

The purchase requisition form process will vary depending on the specifics of the organisation, but generally speaking, it will look something like this:

  1. Firstly, the employee will obtain a purchase requisition form. If the organisation uses e-procurement, they’ll log into the system and create a request via an electronic form.

  2. Next, the employee needs to fill out the form, describing the purchase and why it’s necessary. For instance, the employee may need to request a new office chair as the old one has broken.

  3. Then, the form will be sent to the approver. They’ll review the requisition form and approve the purchase. If the purchase isn’t approved, a short explanation is usually provided.

  4. If necessary, the purchase requisition form may need to be sent to another party within the organisation to confirm details. For example, if an employee has ordered a new laptop, the form may be sent to the IT team to check whether the laptop the employee has selected is compatible with the company’s data security standards.

  5. Next, the requisition form will be sent to the procurement department, where the purchase will be sourced. In addition, procurement will change the requisition form to a purchase order.

  6. Finally, the purchase order is sent to a vendor as a formal request and a purchase will be made.

What are the benefits of purchase requisition forms?

There are a broad range of benefits associated with purchase requisition forms. Firstly, it introduces an additional level of transparency to your business, as it requires all purchases to be justified. Furthermore, it can help you avoid overspending on expensive items when a more affordable product can meet the needs of the company just as effectively. In addition, the procurement department can build up a relationship with vendors and get better deals, and as a result, provide your company with more savings.

Are there any drawbacks associated with purchase requisition forms?

It’s worth noting that requisition forms may not always be a necessity, particularly for smaller businesses. For example, if your company only has a handful of employees, there’s not likely to be much need for a fully-fledged requisition process. Just because a requisition process is useful for larger companies, it may not be the most efficient payment approval process for all businesses.

Furthermore, you may decide that purchases under a certain amount – say, £50 – can be directly approved by a department head. Having said that, as a business grows and expenses grow with it, it may be a good idea to review your purchasing process and implement changes. Introducing a purchase requisition and purchase order process later on could be beneficial.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.

Over 85,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

Get StartedLearn More
Interested in automating the way you get paid? GoCardless can help
Interested in automating the way you get paid? GoCardless can help

Interested in automating the way you get paid? GoCardless can help

Contact sales

Try a better way to collect payments, with GoCardless. It's free to get started.

Try a better way to collect payments

Learn moreSign up