Inventory, warehouse & supply chain
Purchase requisition workflow: approvals that are fast and controlled
Design a purchase requisition process: what a requisition must contain, approval routing, budget checks, consolidation and turning requisitions into POs.
A purchase requisition (PR) is an internal request to buy something. It starts the procurement process and is where most spending decisions are actually made. A good requisition workflow gives purchasing complete information, routes approvals quickly and checks budgets before money is committed. A poor one leads to rushed purchases, duplicate orders and invoices nobody can explain.
What a good requisition contains
- Requester, department, branch or cost center
- Item or service description, using the item catalog when available
- Quantity and unit of measure
- Date needed and delivery location
- Estimated cost and budget line
- Purpose or justification, especially for unbudgeted or capital items
- Suggested supplier or specifications, if applicable
- Attachments: quotes, drawings, technical specifications
Incomplete requisitions cause back-and-forth. Make key fields mandatory in the system.
Approval routing
Route by type, amount and budget status:
| Requisition | Route |
|---|---|
| Stock replenishment within reorder rules | Inventory planner → purchasing |
| Budgeted supplies, small amount | Department head |
| Budgeted, above threshold | Department head → finance |
| Unbudgeted | Department head → finance → executive per amount |
| Capital equipment | Department head → technical review → finance → executive |
| IT purchases | Department head → IT review → finance |
Technical reviews (IT, engineering) can run in parallel with budget review to save time. Use your approval matrix as the basis.
Budget checks
The system should show the approver the remaining budget for the line and flag requisitions that exceed it. Committed but not yet invoiced amounts (open POs) should count against the budget, otherwise budgets look healthier than they are.
From requisition to purchase order
After approval, purchasing:
- Consolidates similar requisitions from several branches into one PO for better pricing
- Sources from accredited suppliers, with quotations for amounts above a threshold (supplier accreditation)
- Creates the PO referencing the requisitions, so requesters can track status
- Notifies requesters of expected delivery
Turnaround targets
Set and measure targets, for example:
- Approval within 1 working day for routine requisitions
- PO issued within 2 working days after approval for catalog items
- Longer, defined times for sourced and capital items
Publish actual performance. Requesters are more patient when they can see status.
Emergency and small purchases
Some needs cannot wait, such as a machine breakdown. Define an emergency purchase procedure with post-approval within a set time, and a petty cash or small purchase limit for minor items. Review emergency purchases monthly, because frequent emergencies usually mean poor planning.
Common problems
- Requisitions approved by the requester's own subordinate
- Splitting requisitions to stay below approval limits
- Requesters contacting suppliers directly and committing before approval
- No link between requisition and PO, so status is unknown
Where Cirquolus fits
Cirquolus Purchasing supports multiple purchasing workflows, including warehouse purchasing, with payment monitoring and purchase history. Financial management adds financial requests and approvals, and inventory management provides the stock data behind replenishment requests. Related: procure-to-pay process.
Frequently asked questions
What is a purchase requisition?
An internal request to purchase goods or services, approved before purchasing creates a purchase order.
What is the difference between a purchase requisition and a purchase order?
A requisition is internal and requests approval to buy. A purchase order is an external document sent to a supplier to commit to the purchase.
Who approves purchase requisitions?
Approvers defined by your approval matrix based on amount, budget status and type of purchase.
How can requisition approvals be faster?
Use complete requisition forms, route by amount and type, run technical and budget reviews in parallel, and approve on mobile.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.