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

Definition and meaning of a purchase requisition form

A purchase requisition form is an internal document used by employees to request the purchase of goods or services. This form is essential for maintaining budget control and ensuring that purchases align with company policies. It serves as a formal request that must be approved by management before any binding purchase order is issued to a vendor. The requisition form typically includes key details such as the items needed, their quantities, estimated costs, and the rationale behind the request.

Key elements of the purchase requisition form

Understanding the critical components of a purchase requisition form is vital for effective use. The main elements include:

• Date: The date the requisition is created, which helps track the request timeline.
• Unique PR number: A specific identifier for the requisition that aids in tracking and referencing.
• Employee details: The name and department of the employee making the request, ensuring accountability.
• Description of items: A clear description of the goods or services needed, including specifications.
• Quantity: The amount of each item required to prevent over-ordering or under-ordering.
• Estimated cost: An approximation of the total expenditure, which is crucial for budget approval.
• Reason for purchase: A justification for the request, explaining why the items are necessary.
• Proposed vendor: If known, the preferred supplier for the requested items.
• Budget information: Details on the budget or account from which the purchase will be made.

How to fill out a purchase requisition form

Filling out a purchase requisition form accurately is essential for smooth processing. Follow these steps:

• Gather necessary information: Collect all relevant details about the items needed, including specifications and quantities.
• Complete employee information: Fill in your name, department, and contact information to establish accountability.
• Detail the items: Provide a thorough description of each item, including any model numbers or specifications.
• Specify quantities: Clearly indicate how many units of each item are required.
• Estimate costs: Research and input the estimated costs for each item to aid in budget approval.
• Justify the purchase: Write a concise explanation of why the items are necessary for your department or project.
• Propose a vendor: If applicable, suggest a vendor that meets your needs and budget.
• Review and submit: Double-check all information for accuracy before submitting the form for approval.

Who typically uses the purchase requisition form

The purchase requisition form is commonly used by various employees across different departments. Key users include:

• Department managers: They often initiate requisitions for departmental needs.
• Procurement teams: These teams manage the purchasing process and require requisitions for approval.
• Administrative staff: They may handle requisitions for office supplies and equipment.
• Project managers: They use requisitions to secure resources necessary for project completion.

Examples of using a purchase requisition form

Real-world scenarios can illustrate how a purchase requisition form is utilized effectively:

• Office supplies: An administrative assistant submits a requisition for paper, pens, and printer ink, detailing quantities and costs.
• Software licenses: A project manager requests approval to purchase software licenses, providing a justification based on project needs.
• Equipment purchase: A department head submits a requisition for new computers, explaining how they will enhance productivity.

Legal use of the purchase requisition form

The purchase requisition form serves as a formal request and may have legal implications. It is important to understand its role in compliance:

• Internal controls: The form helps enforce internal controls by requiring approvals before purchases.
• Audit trails: Maintaining a record of requisitions supports accountability and transparency during audits.
• Contractual obligations: Once a requisition is approved and a purchase order is issued, it may create binding obligations with vendors.

Why should you use a purchase requisition form

The use of a purchase requisition form offers several advantages for organizations:

• Budget management: It helps track spending and ensures purchases align with budgetary constraints.
• Fraud prevention: The requirement for approval reduces the risk of unauthorized purchases.
• Streamlined purchasing: It standardizes the purchasing process, making it more efficient and organized.
• Enhanced communication: The form serves as a communication tool between employees and management regarding purchasing needs.

Steps to complete the purchase requisition form

Completing a purchase requisition form involves several key steps to ensure accuracy and compliance:

• Identify needs: Determine what items or services are necessary for your department or project.
• Research options: Look into potential vendors and gather information on pricing and availability.
• Fill out the form: Enter all required information clearly and accurately, following the guidelines provided.
• Submit for approval: Send the completed form to the appropriate manager or department for review.
• Follow up: Check on the status of the requisition to ensure timely processing and address any questions.