Requisitioning

Requisitioning is the internal process by which departments request the purchase of goods or services. It initiates the procurement cycle and serves as a control to ensure needs are properly documented, budgeted, and authorized before a purchase is made. A requisition typically specifies item descriptions, quantities, delivery requirements, and may include project codes or cost centers. Requisitioning can be manual or electronic using an e-procurement or ERP system. It helps create an auditable trail and supports financial controls by requiring approval based on organizational policy.

The process usually begins with the identification of a need, followed by creating a requisition, routing for approval according to role-based thresholds, budget checks, and supplier selection or handoff to purchasing. Once approved, a purchase order or service order is generated, enabling procurement to source suppliers and arrange delivery or execution. After receipt, receiving and invoicing steps involve matching the purchase order, receipt of goods, and supplier invoice (three-way match).

Requisitioning can apply to goods, services, or capital expenditures. It may differentiate between standard or blanket requisitions, recurring orders, or project-specific requests. Organizations establish policies such as spend thresholds, delegated authority, and dual controls to prevent fraud and maverick buying. Benefits include improved spend visibility, better budgeting, standardization, and risk management, while potential drawbacks include administrative overhead and delayed purchases if approvals are slow.