Requisition

Definition

A Requisition is a formal request for obtaining a product or service, typically initiated by a business through a standardized document known as a requisition form. This process aids in maintaining a well-organized and trackable procurement system ensuring that all requests can be audited for future reference.

Requisition	Purchase Order (PO)
A request for goods or services that must be approved before any purchase is made.	A request for goods or services established by the vendor, often following a requisition.
Created by employees needing items or services.	Created by the purchasing department or allowed personnel.
Often precedes a purchase order.	Constitutes a legally binding document upon acceptance by a vendor.

How a Requisition Works

Requisitions essentially streamline the procurement process through a set pathway. Here’s how it typically works:

An employee identifies a need for goods or services.
A requisition form is completed outlining the request and often requires approval from a supervisor.
The approved requisition is then processed, and a purchase order may be generated once funds are allocated.
The items or services are procured and delivered to the requesting department.
The entire process is tracked digitally or physically for accountability and auditing purposes.

    flowchart TD
	    A[Identify Need] --> B[Complete Requisition Form]
	    B --> C[Request Approval]
	    C --> |Approved| D[Generate Purchase Order]
	    D --> E[Procure Goods/Services]
	    E --> F[Receive and Verify]
	    F --> G[Payment Processing]
	    G --> H[Audit Trail Maintained]

Examples

Office Supplies Requisition: An employee requires pens, paper, and folders for the office and submits a requisition form for approval.
Project Materials Requisition: A project manager identifies the need for additional materials to complete a client project and follows the requisition process.

Procure-To-Pay (P2P): A method where the entire buying process is automated from requisitioning to payment.
Purchase Order: A formal contract between a buyer and seller detailing the items, quantities, and prices.

Humorous Quotations & Fun Facts

“Requisition: the secret code for ‘I need this to do my job (or just to avoid sitting in meetings all day!)’.”
Fun Fact: Did you know that businesses that streamline their requisition processes can save up to 30% on procurement costs? That means more pizza Friday funding! 🍕
“I wish my requisitions would magically turn into coffee. Oh wait, that’s just my wish-list! ☕️”

Frequently Asked Questions (FAQ)

What is the purpose of a requisition?
- The primary purpose is to formalize the request for goods or services, helping organizations manage purchasing and budgeting effectively.
Is a requisition legally binding?
- No, a requisition itself is not a legally binding contract; it is simply a request that may result in a legally binding purchase order if approved.
Are requisitions always in hard copy?
- While traditionally they may have been printed forms, most requisitions are now submitted electronically for convenience and tracking.
Who approves a requisition?
- Requisitions are typically approved by a supervisor or manager in charge of the budget allocation for that specific department.
What happens if a requisition is denied?
- If denied, the requester might need to clarify the request or seek alternative options according to organizational policies.

Recommended Resources

Supply Chain Management: A Logistics Perspective by John J. Coyle et al. - A great read for understanding the bigger picture of procurement processes.
The Procurement and Supply Manager’s Desk Reference by Fred Sollish & John Semanik - A handy guide for practical procurement strategies.

Test Your Knowledge: Requisition Challenge! 🎉

## What is a requisition primarily used for? - [x] Formal requests for goods or services. - [ ] Filing tax returns. - [ ] Organizing a BBQ. - [ ] Hunting for treasure. > **Explanation:** A requisition is mainly used for formalized requests to procure goods or services within a business context, not for treasure hunting (though that would be exciting!). ## Who typically approves a requisition? - [ ] The ghost of Steve Jobs. - [x] A supervisor or manager. - [ ] Random people on the internet. - [ ] The office janitor. > **Explanation:** Requisitions must go through a proper chain of approval, typically involving a supervisor or the designated manager, unlike random internet users! ## Is a requisition a legally binding document? - [ ] Yes, absolutely. - [x] No, it's just a request. - [ ] Only during a full moon. - [ ] Only if signed in blood. > **Explanation:** A requisition is a formal request but doesn't hold legal power until it turns into a purchase order. Your blood signature, while unique, doesn't count! ## Which system automates the requisition process? - [ ] The ‘Hope for the Best’ system. - [ ] The Mystery Machine. - [x] Procure-To-Pay (P2P) system. - [ ] The Time Machine. > **Explanation:** The Procure-To-Pay (P2P) system is designed to streamline the purchasing process—no time travel needed! ## What happens to requisitions that are not approved? - [x] They are denied and reassessment needed. - [ ] They automatically turn into purchase orders. - [ ] They are sent to the ‘lost’ folder. - [ ] They get sent to outer space. > **Explanation:** Unapproved requisitions don't magically transform; they usually require further explanation or adjustment. Outer space isn’t accepting applications either! ## What does a requisition form typically indicate? - [ ] A request for pizza. - [x] A need for goods or services. - [ ] A holiday card. - [ ] A game of charades. > **Explanation:** A requisition form communicates specific goods or service needs—not pizza orders or charades, although those do deserve their own forms! ## Which is true about requisitions? - [x] They help maintain an audit trail. - [ ] All requisitions turn into parrots. - [ ] They are only used by wizards. - [ ] They can be cooked up in the kitchen. > **Explanation:** Requisitions are essential for maintaining a clear audit trail in business processes. No magic, just honest record-keeping! ## What is the main goal of a requisition in businesses? - [ ] To make office life more complicated. - [x] To organize the procurement process effectively. - [ ] To find a hidden treasure map. - [ ] To become a viral meme. > **Explanation:** The main goal of a requisition is to aid in the seamless organization and management of procurement processes—definitely not to become the next viral sensation! ## Can requisitions be submitted electronically? - [x] Yes, most are submitted electronically nowadays! - [ ] No, they must be handwritten with a quill. - [ ] Only if performed during a full moon. - [ ] Just through inner thoughts. > **Explanation:** Most requisitions are now submitted via digital channels for efficiency and easier tracking, thankfully leaving quills in the past! ## What are some alternative requisition forms? - [x] Projects, inventory, maintenance requests. - [ ] Antique maps and scrolls. - [ ] Restaurant menus. - [ ] Party invitations. > **Explanation:** Besides typical requisitions for goods, forms can also cover projects, inventory, and maintenance needs—not birthday invitations or ancient treasure maps!

Thank you for diving into the world of requisitions! May your next request lead you to gloriously organized supplies, and remember: each approved requisition brings us one step closer to a well-stocked kitchen—whether it’s coffee or paper supplies, the world is yours to organize! ☕️📎