Purchase Requisition vs Purchase Order: Understanding the Flow
Purchase requisitions and purchase orders are two steps in the same buying process, but only one of them ever leaves your company. Mixing them up creates approval gaps and uncontrolled spending.
1. Purchase Requisition: The Internal Ask
A purchase requisition is a request from within the business – “we need 50 notebooks and a printer” – with estimated cost and the business reason. It is the document that triggers approval, not ordering.
2. Purchase Order: The External Commitment
Once approved, the requisition becomes a purchase order that is sent to the supplier. The PO fixes quantities, prices, delivery, and terms, and forms the binding agreement.
3. Why the Separation Matters
- Requisitions allow budget checks before any commitment.
- Approval adds control over who can spend and how much.
- POs give you a clean document to match supplier invoices against.
4. The Simple Flow
Requisition → approval → supplier selection → purchase order → delivery → goods receipt → invoice match → payment. Skipping a step invites errors somewhere downstream.
Turn approvals into clean supplier-facing POs with the free Purchase Order Generator, and manage the full lifecycle with our purchase order process guide.
Frequently Asked Questions
Does a purchase requisition go to the supplier?
No. A purchase requisition is internal. It stays inside your company as a request for approval. Only the approved purchase order is sent to the supplier.
Who creates a purchase requisition?
Any employee with a buying need creates the requisition. It is then reviewed and approved by a manager or the finance department before it becomes a purchase order.
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