Requisition: Definition, How It Works, and Key Considerations
What is a requisition?
A requisition is a formal request for a product, service, or action, typically made within an organization using a standardized form or digital workflow. It creates an auditable record of the request and initiates the procurement or fulfillment process.
Key points
Requisitions are internal requests and are not legally binding contracts.
They establish control, accountability, and an audit trail for needs such as supplies, services, or labor.
* Modern systems are usually electronic and can integrate with inventory and procurement workflows.
How a requisition works
- A user identifies a need and completes a requisition form (paper or, usually, electronic).
- The requisition is routed for required approvals (managerial, departmental, purchasing).
- Approved requisitions may be converted into a purchase order (PO) and sent to a vendor.
- Receipt of goods/services and payment follow the PO and accounts-payable processes.
Electronic requisition systems often update inventory records automatically and make tracking, reporting, and auditing easier. In healthcare, for example, lab requisition forms include patient identifiers to ensure correct testing.
Standardized requisition forms
Typical fields on a requisition form include:
Requestor name and department
Date of request and desired delivery date
Item descriptions, quantities, and catalog numbers
Delivery location and contact information
* Approvals/signatures and completion date
These fields help ensure consistency across locations and support centralized purchasing and inventory control.
Requisition vs. Purchase Order
- Purchase requisition: an internal request to obtain goods or services; not a contract. It signals need and starts the procurement workflow.
- Purchase order (PO): an external document issued to a supplier that becomes a contractual agreement once accepted. It details items, prices, delivery terms, and payment terms.
Example
A training team needs classroom supplies. The team lead submits an electronic requisition selecting items from a catalog. The manager reviews and approves it, then the purchasing department validates details and issues a purchase order to the supplier. The supplier fulfills the order and the buyer completes payment after receipt.
Special considerations
Purchase-to-pay (P2P) systems
P2P platforms automate requisitioning, purchasing, and payment.
They present catalogs, support shopping-cart workflows, route approvals, generate POs, and record payments—improving efficiency and reducing errors.
Requisitioned property
* Refers to property taken by a government authority (e.g., eminent domain). Legal rules typically require compensation at fair market value.
Job requisition
* A formal request to fill a new or vacant position. It specifies role requirements, qualifications, and often the target salary range.
Requisition reconciliation in accounting
* The process of comparing two sets of records (e.g., requisitions vs. purchase orders or receipts) to identify discrepancies and ensure accuracy. Reconciliation supports internal controls and compliance with accounting standards.
Bottom line
A requisition is a documented internal request that improves control and transparency in acquiring goods, services, or actions. Used together with approvals and purchase orders—or automated within P2P systems—requisitions help organizations manage inventory, spending, and procurement workflows more effectively.