how a requisition works
a requisition initiates the request for a specific action and also records that action for subsequent reporting needs for example employees within a company would use a purchase requisition if they needed additional supplies at one time requisitions were done via paper forms but most companies now use digital requisition processes that enable easier process tracking including accounting for relevant inventory these types of requisitions often automatically update the inventory for better control a formalized requisition process improves efficiency and accountability across all points of contact compared to an approach where employees take supplies anytime the purchase requisition provides a more controlled and documented method for managing internal supply inventories and future demand in the medical profession doctors complete a requisition form when requesting lab tests these digital forms include the patient id and other medical information assuring patients receive correct lab tests standardized requisition formsrequisition forms typically include line items such as the the forms generally also include the signature of the individual fulfilling the request and the date completed in large corporations with multiple locations and centralized purchasing these requisition processes are critical for maintaining employee productivity another example of a requisition process occurs within the world of finance when shareholders choose to requisition a company s board of directors to take a vote on proposed resolutions at its essence a requisition process is a formalized documented procedure key to improving efficiencies within a business setting purchase requisition vs purchase ordera purchase requisition is an internal form used for procuring goods and services and has no legal or binding contractual obligations a company s internal purchase requisition form is for employees who wish to request supplies for their departments or themselves frequently these forms require managerial signoff a purchase order is a contractual agreement companies use when ordering goods and services from an external vendor for example a company ordering supplies from an office store will issue a purchase order detailing the items purchased their prices payment terms delivery dates and any special discounts for early payment example of a requisitionto better understand the requisition process consider the following example a health insurance company s learning and development team needs new supplies for its training program the team lead must request these supplies through the company s automated requisition system the lead searches a catalog and selects an assortment of products for the team after completing the requisition form it is submitted to management for approval the manager reviews and approves it then sends the request to the purchasing department like the manager the purchasing department reviews and approves the requisition if errors are present or if not enough information is included the request may be returned to the manager or the requestor for updates in this example no errors or omissions were found so a purchase order was created the purchase order lists the specifics of the order such as the product type and the quantity needed once final the purchase order is sent to the supplier for fulfillment the supplier receives the order and if accepted contracts with the purchaser for the products requested the purchase order serves as the contract the supplier delivers the products as requested and receives payment special considerationspurchase to pay systems p2p streamline and automate companies requisition and procurement processes three main processes are cared for by these systems requisitioning purchasing and payment by automating these processes purchase to pay systems increase efficiency and accuracy in accounting purchase to pay systems can reduce costs by approximately 80 1the automated process begins with requisitioning users are presented with a catalog of products or services items are then selected and saved in a shopping cart the requisition is routed to management for approval and once received the system moves to the purchasing process and then finalized once payment is made to the vendor 