Requisition – Definition

Cite this article as:"Requisition – Definition," in The Business Professor, updated October 10, 2019, last accessed October 24, 2020,


Requisition Definition

A requisition is a standard way of requesting goods and services that would ordinarily not be made available unless they are requested for. Requisition is often used in procurement, it refers to a  formal way of requesting goods and services form a department or supplier. For businesses or departments that supply goods and services, the requisition process helps them keep records of the business. Usually, a requisition is in written form, it is a formal demand for goods and services that are made available only on request.

A Little More on What is a Requisition

A requisition is not only used for purchase, there are certain situations where requisitions are used outside of purchase and procurement. In the general sense, when a requisition is used, it means a request has formally been made and certain actions are expected to follow. In the case of a purchase requisition, an employee who writes it is making a formal request for certain goods and services to be provided.

Prior to the digitalization of businesses, requisitions are in written forms and made on papers. Nowadays, there are digital requisition processes that enable swift request for goods and services. Requisition is crucial for tracking the inventory of a business, it fosters a good record keeping for businesses.

Being a standardized or formalized process of making requests, requisition enhance transparency and accountability of businesses. Before requisition was widely adopted, the common practise was on in which employees take the supplies they need without any formal documentation. This made tracking the inventory of  business more difficult.

There are some important details that needs to be supplied when an employee is making requisition, these are; The date the request is made, the name of the person making the request, details of supplies requested, date of delivery, point of delivery and the company responsible for the request. The individual writing a requisition must append his or her signature at the end.

Purchase Requisition or Purchase Order?

A purchase requisition is also called a purchase order, it is a written and formal request for goods and services. Large companies often use the purchase requisition process when employees need to procure certain goods and services from a department in the company.

A purchase order can also be used by companies to order or request goods an services from external companies, vendors and suppliers. When used for this purpose, it is a contractual agreement between companies that contains the details of the request, the items being purchased, their quantity, prices, payment plans, delivery dates and other information.

References for “Requisition › Setting Up a New Business › Company Names

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