Purchase Requisition is a formal request intended to procure something which is required by the organization. This process is created and approved by the purchasing department which requires the products and services. It contains the description and quantity of the products to be purchased, bank account number, required a delivery date, and the amount of money that the department is authorized to spend for the goods.
Basically, requisitions are of two types they are Internal and Purchase Requisitions.
The Internal Requisitions are created if the goods are to be obtained from one inventory to another inventory location within the same organization. Here the source of the requisition would be inventory. There is no approval process for it.
Purchase Requisitions are created if the products are obtained from the external suppliers. Here the source of the requisition would be suppliers. The approvals are sent for purchase requisitions.
Requisition is divided into two parts: header and lines.
The header holds the information about the requisition that is related to all the lines where as the lines have the specific information about the item to be purchased. Then navigate to lines tab and select the item that you wanted to purchase and enter the quantity and need by date.
In the Source details tab, you can input detailed information. You can give a particular note to the customer which might give particular information related to this purchase. You can also add buyer’s name. Request for Quotation is required to check box denotes that the purchase of the item needs a request for quote.
Global is checked when a blanket purchase agreement for the entire organization exists for the item being purchased.
Owning organization displays the organization who owns the agreement and this is usually seen when an organization is using a centralized purchasing model.