Within procurement there is the function of purchasing goods and services necessary for effective project management. The process of purchase to pay (P2P) very often requires a purchasing agent to file a purchase requisition.

Purchasing approval process.

The operation of requisitioning goods and services is to appeal to a higher authority within the company to gain approval for the proposed purchase. Very often the requisition is sent to someone responsible for the supply chain management strategy in the company like a procurement manager or financial officer.

Traditionally, this process is a manual operation where the goods and services proposed for purchasing are itemised and priced on a paper template. The financial officer would be tracked down in person, the paper would be signed off, and then filed away.

Changing the peg.

When we know certain elements of something work but there is a better way, why not evolve with those new insights? Over time, pegs in old-style carpentry will rot with exposure to the elements. If a well crafted chair is effective and serves its purpose perfectly but a few pegs need replacing with improved plastic pegs to keep it functional, a carpenter can place the new peg in front of the old and hammer out the old to have a new one replace it.

While the requisition process is effective at ensuring the reduction of unauthorised purchasing, it is painfully inefficient. When we developed Purchase Control, our online purchase order software, we wanted to make this entire process as quick as it is secure while keeping the essence of requisition. So, we changed the peg.

Requisition solution in Purchase Control.

The first thing we noticed is that in a requisition all the data needed for populating a requisition template was already input to the purchase order. Because our system is online, a requisition can be automatically populated from the PO data and sent as an email to the requisition officer. The purchase order is then left open until approval is given. Only then is the option to close the purchase order given to the purchasing agent.

Essentially, what Purchase Control has done for procurement software is to eliminate performing outdated traditional requisition without losing security and oversight.

What is a purchase requisition?