What happens to a Purchase Requisition after it is approved?

When a Purchase Requisition is approved, it signifies that the request for goods or services has received the necessary authorization, allowing it to progress within the procurement process. The next step is typically to convert the approved Purchase Requisition into a Purchase Order (PO). This transition is crucial because the Purchase Order serves as a formal agreement between the purchaser and the supplier, clearly stating the details of what has been requested, the quantities, pricing, and delivery terms.

Transforming the Purchase Requisition into a Purchase Order effectively initiates the purchasing transaction, enabling the acquisition of the requested items or services. This conversion is essential for tracking, fulfilling, and managing the purchasing process in an organized manner.

In contrast, options that involve archiving or modification of the requisition do not align with the standard procedure following approval, as typically approved requisitions move forward to become POs, rather than being archived or requiring changes. Direct processing as a purchase is also not the typical path following an approved requisition, as it bypasses the necessary formalities that the Purchase Order provides.