What happens once a Purchase Requisition is fully approved?

Once a Purchase Requisition is fully approved, it is converted into a Purchase Order. This is a critical step in the procurement process, as the approved Purchase Requisition signifies that the necessary approvals and budget constraints have been met for the purchase. The conversion to a Purchase Order indicates that the organization is formally committing to procuring the specified goods or services from a vendor.

This transition also formalizes the procurement process and establishes the intent to acquire items based on specific terms, conditions, and pricing. At this stage, the Purchase Order serves as a document that can be used for tracking the order fulfillment and ensuring that the organization receives what it has agreed to purchase.

The other choices, while relevant to the procurement process in various ways, do not accurately reflect the immediate next step after a Purchase Requisition is approved. For example, archiving is a subsequent action that could happen after the order fulfillment, but it is not the next step. Similarly, while a Purchase Order does create obligations for both parties, it is not the equivalent of a legally binding contract in the same sense, as it may still depend on additional agreements and terms. Lastly, sending the requisition back for review would typically occur if there were issues or needed clarifications during the approval