Purchase requisition vs. purchase order
The difference between a purchase requisition and a purchase order, who creates each, and how they fit in the purchasing process.
The short answer
A purchase requisition is an internal request to buy something. A purchase order is the formal document sent to a supplier committing to the purchase. The requisition asks permission; the order makes the commitment.
Who creates each
A requester in the business raises the requisition. After it is approved, the purchasing team converts it into a purchase order addressed to the chosen supplier.
Why the split matters
Separating the two creates a control point. Budget checks and approvals happen on the requisition, before the organization is legally committed. Once a PO is issued, changes require an amendment and a record.
How they connect to the invoice
The purchase order is the reference point for three-way matching: the invoice is checked against the PO and the goods receipt before payment is released.
Frequently asked questions
Can a purchase requisition be rejected?
Yes. An approver can reject or send back a requisition, for example when budget is unavailable or when an existing contract should be used.
Does every purchase need a purchase order?
Most organizations require one for anything above a set value or outside approved catalog items. The threshold is a policy decision, not a technical rule.
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