What Is a Requisition? Definition, Types & Examples Explained

What Is a Requisition?

A requisition is a formal internal request to purchase goods or services, submitted by an employee or department and routed for approval before a purchase order is issued. It initiates the purchasing process but is not itself an order to a supplier - it is the 'we need to buy this' step that goes through approval before anything is committed externally. In 2026, most mid-size companies route requisitions through procurement software for approval and spend control.

Requisition Meaning

The requisition meaning in plain terms: an internal 'please approve this purchase' request. It captures what is needed, why, how much it will cost, and who needs to approve it. Once approved, it converts into a purchase order, an RFQ, or a catalog buy. The requisition is the input to the approval workflow; the PO is the output.

Types of Requisitions

There are three common types of requisitions, each in a different business function:

• Purchase requisition - a request to buy goods or services (the procurement type, most common)
• Job requisition - an HR document requesting a new hire, with headcount, budget, and required start date. See job requisition.
• Material requisition - a manufacturing document for materials drawn from inventory for production

What a Requisition Form Includes

A standard requisition form captures:

• Requester name, department, and date
• Items - description, quantity, specifications
• Estimated cost and budget code
• Required-by date
• Preferred supplier (optional)
• Business justification
• Approval signatures - the routing chain

Every requisition carries a unique requisition number for tracking through approval, conversion, and audit.

Requisition vs Purchase Order

The key difference: a requisition is an internal request (we need to buy 500 kg of steel), while a purchase order is the external commitment sent to the supplier after approval. Requisitions come first; POs come after approval. A single requisition can generate one or many POs (split across suppliers) - each PO gets its own PO number, all referencing back to the requisition number for audit.

The Requisition Process

A structured requisition process runs as follows:

• 1. Employee identifies a need and submits a requisition
• 2. Requisition routes to the right approver (manager, finance, or category owner)
• 3. Approver reviews budget, necessity, and supplier choice
• 4. Approved requisition converts to a PO, an RFQ, or a catalog buy
• 5. The PO is issued to the supplier and goods are received
• 6. The requisition and PO are linked in the audit trail

Why Formalize Requisitions?

Unstructured requisitions (Slack messages, hallway asks, direct emails to suppliers) cause maverick spending, audit gaps, and budget overruns. Formalized requisitions enforce spend control, route approvals by authority limits, and create the audit trail finance needs at year-end. They also feed spend analysis so procurement can find savings and consolidation opportunities.

Frequently Asked Questions

What is a requisition in procurement?

A requisition in procurement is a formal internal request to buy goods or services, submitted by an employee or department and routed for approval before a purchase order is issued. It is internal - not sent to the supplier - and it captures what is needed, why, the estimated cost, and the required approvals.

What is the difference between a requisition and a purchase order?

A requisition is an internal request (we want to buy this); a purchase order is the external commitment sent to the supplier after approval. The requisition triggers approval; the PO commits the spend. A single requisition can become multiple POs split across suppliers.

What is a job requisition?

A job requisition is an HR document that formally requests a new hire - with headcount, budget, reporting line, and required start date. It is the HR equivalent of a purchase requisition: an internal request that goes through approval before recruiting begins. See job requisition.

What is a requisition number?

A requisition number is the unique identifier on a requisition, used to track it through approval, conversion to a PO, and final receipt. Like a PO number but for the internal request stage. See requisition number.

What should a requisition form include?

A requisition form should include the requester, department, date, items with specifications and quantities, estimated cost and budget code, required-by date, optional preferred supplier, business justification, and approval signatures. See requisition form.

Why do companies use requisitions?

Companies use requisitions to enforce spend control, route approvals by authority limits, prevent maverick spending, and create an audit trail. Without formal requisitions, purchases happen ad-hoc, budgets blow out, and finance lacks the audit trail it needs at year-end.