Purchasing Request — The Ultimate Guide of 2023

Purchasing requests are needed to inform the organization of the needs of a specific department. However, it is not surprising that some people who are new in the field of procurement do not know how to make a purchase request. 

In this article, we will discuss what a purchasing request is. We will also explore the process of purchasing requests to help those who have just begun their journey in procurement. Additionally, we will check how it compares to a purchasing order. 

Once you finish this article, you will have an in-depth knowledge of a purchasing request. The knowledge you will learn from this article will allow you to easily follow the process of purchasing requests. In addition, you will know the importance of a purchasing request in procurement. 

Whatis a Purchase Request?

In every organization, we know that many departments need materials from time to time to do their responsibilities. The materials include basic office suppliers, equipment, raw materials, and services. This is where the purchase request comes to mind. 

A purchase request is a document that an employee or department creates to request the purchases of goods or services. 

When you are filling up the purchase request form, you are not purchasing anything yet. Rather, you are merely at the beginning of the process of purchasing by asking internal permission. 

Usually, purchase requests are used when an employee makes an order request if the needs arise for certain goods or services. 

Typically, the managers are notified that an employee in their department has made an order request. This allows them to monitor and control the risk of unnecessary expenses. 

A purchase request outlines the following details required before purchasing when it is approved:

• Product description and its quantity
• Name of the vendor/supplier
• Price
• Name and department of the purchaser

How Does a Purchasing RequestWork? 

A purchase request is first filled out by employees who see the need for a product or service in their department. 

The employee fills out the details that include the price, suggested supplier, and the specifics of the goods or services. 

However, it is not surprising that some people who are new in the field of procurement do not know how to make a purchase request. It can be approved or denied based on the assessment of the head of purchases together with the financial department. 

Why Do OrganizationsNeed Purchasing Orders?

1. Helps establish a clear procurement process

The group’s organization can streamline its pipeline by redirecting permission to purchase to a common manager. 

The process is easier to manage when there are clear rules for who can purchase what and when. 

2. Assists in detecting and preventing fraud in the organization

An organization that has a lot of steps involved in its procurement process can easily check if there is fraud. The additional steps can filter or check if there is any discrepancy with all the documents being processed. 

3. Gives finance more direct control over purchasing

When someone outside your department needs to purchase something, they will need to fill out the purchase request. 

After filling it up, they must submit it to the head of purchases. In this way, the same department can see every purchase the organization makes. 

What is a Purchasing Requisition Form?

A purchasing requisition form is an internal document used by the employees to buy the needed materials or services on behalf of the company. The materials and services acquired may be for business operations, manufacturing inputs, or for inventory. 

Additionally, the purchasing requisition form is submitted to the purchasing department for approval to make an effective way of audit for purchasing. 

Once the purchasing requisition is approved by the purchasing department, the purchase order will be issued to the supplier of the requested materials or services. 

What are the Contents of the Purchasing Requisition Form?

A purchasing requisition form is a document used by the employees of the firm to be able to purchase materials or services on behalf of the company. However, you do not just write anything on it. It has specific details that you need to fill such as the following:

• The requester’s name or department
• Supplier’s name
• Date of request
• Requester’s address or location
• The purchasing requisition number
• The reason for the purchase
• Item description and quantity
• The delivery date of the items
• The estimated price of the purchases