Requisition

Reviewed by Vineeth | Updated on Aug 27, 2020

Introduction

Requisition points to the procedure of traditionally requesting for an item or a service, generally using the purchase requisition form or any other formal or standard document. The process of requisition is a formal and standard method of having a track of and accounting for every request that is made in a business entity.

Understanding Requisition

The requisition will initiate a request for a particular action and will also note the action for the following reporting essentials. For instance, employees in an organisation will use a purchase requisition if they are in need of excess supplies. Until recently, one time requisitions were mostly made in paper forms, but the majority of the companies are now accepting requests in the digital format. This will enable both businesses and customers to track requests, including associated inventory. These sort of requests generally automatically update the inventory for more effective controls.

A formal procedure for requisition will result in more efficient and increased accountability through all points of contact. In contrast, the employees merely taking all the supplies they want when needed, the purchase requisition will provide a better document and controlled procedure for handling the internal supply of inventories and demand in the future. For instance, professionals in healthcare and doctors will fill up a requisition form when there is a need for requesting for a lab test. The requisition forms will cover the patient ID, other medical information that is necessary for the lab operator to conduct the required examination.

Example

Business ordering supplies from one of its stores will go onto issue an order of purchase which will provide detailed information of the items purchased, payment details, delivery dates, and any sorts of discounts and offers that the customer is eligible for.