Gorika Mehta In: Category - Expense Difference between purchase requisition and purchase order? purchase orderPurchase requisition Share Facebook 1 Answer Voted Recent Aastha 2020-08-28T23:13:09+05:30Added an answer on August 28, 2020 at 11:13 pm This answer was edited. What is a Purchase Requisition? In the case of larger organisations, it may so happen that the procurement department places an order of purchase only once such requirement is approved by another department. When the procurement department intends to procure goods it will have to issue a purchase requisition to its financial wing. Thus the document sent to such another department for approval is called a purchase requisition. I am inserting the specimen of a purchase requisition you can have a glance – For Example, ABC Ltd is engaged in manufacturing packed food products, It procures raw materials from various vendors and the company has a policy that before placing any order the department needs to seek the approval of the company’s finance wing. Hence, the procurement department for seeking such approval shall issue a Purchase requisition document. It includes the following: Vendor Information Quantity or Units Description of Goods Location of the Purchaser Amount or Price What is a Purchase Order? After receipt of the Purchase Requisition from the procurement department, the financial department of an organization shall issue a purchase order to the Vendor. Continuing the purchase requisition example- When the finance department of ABC Ltd receives the purchase requisition from the Procurement department for purchase of raw materials the finance department will analyse the document and once satisfied with the content shall issue a purchase order in favour of the external vendor. And thus the order is said to be placed successfully. I am inserting the specimen of purchase order you can have a glance – It includes the following: Purchase Order Number Purchaser and Vendor Information Quantity or Units of Goods Price or Amount Invoice Number and Invoice Related Information Description of goods Payment Terms Difference between Purchase Requisition and Purchase Order Purchase Requisition is used to simply seek permission from another department within the entity whereas such other department uses purchase order to actually place an order i.e make a purchase of specific goods required. Where Purchase requisition is a document generally used internally within an organisation whereas the purchase order is generally issued to the external vendor. The purchase order is issued after purchase requisition. Aastha Mehta. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?