Requisition definition
/What is a Requisition?
A requisition is a written request made by an employee for an organization's purchasing department to buy goods or services. This request specifies the exact item and quantity to be obtained, so that the purchasing staff can more efficiently source what is needed. A requisition form may be signed by the department manager whose department will be charged for the purchase; doing so gives the manager approval authority over every purchase. The use of a requisition can be time-consuming, so many organizations use procurement cards to sidestep the process for less-expensive purchases.
How a Requisition Works
The employee needing to acquire something initially fills out a requisition form and then takes it to his or her manager for approval. If approved, the requisition is then forwarded to the purchasing department, which acquires the items indicated on the form.
Advantages of a Requisition
There are several advantages to using requisitions in the purchasing process. First, they establish accountability, since someone has to sign off on each one and accept the charges associated with it. Because of this, requisitions tend to reduce the amount of costs incurred by a business. Also, because they clearly state who will be charged for a purchase, there is no way to obfuscate a purchase, which tends to reduce the amount of purchasing fraud that occurs.