What is a Purchase Requisition Template and How to Use It?

Definition and Meaning of a Purchase Requisition Template

A purchase requisition template is a standardized document used within organizations to formally request the purchase of goods or services. This template serves as a critical tool for managing procurement processes, ensuring that all requests are documented and approved before any expenditures occur. The template typically includes essential details such as the description of the item or service required, the quantity needed, the estimated cost, and the purpose of the purchase. By utilizing a purchase requisition template, businesses can maintain control over their spending and ensure that purchases align with budgetary constraints.

Key Elements of a Purchase Requisition Template

Understanding the key components of a purchase requisition template is essential for effective use. The following elements are typically included:

• Requester Information: This section captures the name, department, and date of the request, ensuring accountability.
• Item Details: A clear description of the goods or services requested, including quantity and specifications, is crucial for accurate processing.
• Cost Information: This includes the estimated unit cost, total cost, and relevant budget codes or accounts to facilitate financial tracking.
• Justification: A brief explanation of why the purchase is necessary, linking it to business needs or project requirements.
• Supplier Information: If known, this section includes preferred vendor details, which can expedite the procurement process.
• Attachments: Any supporting documents, such as quotes or proposals, should be included to provide context and validation for the request.
• Approval Signatures: Spaces for required signatures from managers or finance personnel to authorize the purchase.

How to Fill Out a Purchase Requisition Template

Filling out a purchase requisition template requires careful attention to detail to ensure that all necessary information is included. Here is a step-by-step guide:

• Step 1: Begin by entering the requester information, including your name, department, and the date of the request.
• Step 2: Clearly describe the item or service needed, specifying the quantity and any relevant details that will help in identifying the request.
• Step 3: Provide an estimated cost for each item, along with the total cost, ensuring that it aligns with the budget code.
• Step 4: Include a justification for the purchase, explaining how it supports business objectives or operational needs.
• Step 5: If applicable, fill in the supplier information, including the vendor's name and contact details.
• Step 6: Attach any necessary documents that provide additional context or support for the request.
• Step 7: Finally, ensure that the requisition is signed by the appropriate approvers to validate the request.

Examples of Using a Purchase Requisition Template

Utilizing a purchase requisition template can vary across different industries and scenarios. Here are a few practical examples:

• Office Supplies: An employee in a marketing department might submit a requisition for printer ink and paper, detailing the quantities needed and the purpose of the supplies.
• Software Licenses: A project manager may request software licenses for a new project, justifying the purchase by linking it to project deliverables and timelines.
• Equipment Purchases: A facilities manager could request new office furniture, providing specifications and costs to enhance workplace ergonomics.

Who Typically Uses a Purchase Requisition Template?

Various roles within an organization may utilize a purchase requisition template, including:

• Employees: Staff members who identify the need for specific goods or services often initiate the requisition process.
• Department Managers: Managers review and approve requisitions submitted by their team members, ensuring alignment with departmental budgets.
• Procurement Officers: These professionals oversee the procurement process and may require requisitions for compliance and tracking purposes.
• Finance Teams: Finance personnel review requisitions to ensure that purchases are within budget and properly documented.

Legal Use of a Purchase Requisition Template

In the United States, the use of a purchase requisition template is often governed by internal company policies and may also be influenced by relevant laws and regulations. Key considerations include:

• Compliance: Organizations must ensure that their procurement processes comply with federal, state, and local laws, particularly when dealing with public funds.
• Documentation: Maintaining accurate records of purchase requisitions is essential for audits and financial reporting.
• Approval Processes: Legal frameworks may dictate specific approval hierarchies, ensuring that purchases are authorized by designated individuals.

Why Use a Purchase Requisition Template?

Implementing a purchase requisition template offers several advantages for organizations, including:

• Streamlined Processes: A standardized template simplifies the procurement process, making it easier for employees to submit requests.
• Enhanced Control: By requiring formal approval for purchases, organizations can better manage their budgets and spending.
• Improved Accountability: Documenting requests ensures that there is a clear record of who requested what, reducing the likelihood of errors or disputes.
• Increased Transparency: A purchase requisition template fosters transparency in the procurement process, allowing stakeholders to track requests and approvals.

Important Terms Related to Purchase Requisition Templates

Familiarity with key terms associated with purchase requisition templates can enhance understanding and communication. Some important terms include:

• Purchase Order (PO): A formal document issued by a buyer to a seller, indicating the details of the goods or services ordered.
• Budget Code: A code used to categorize expenses within an organization’s budget, facilitating financial tracking.
• Procurement Process: The series of steps involved in acquiring goods or services, from identifying needs to finalizing purchases.