What is a Purchase Requisition (PR)?

A Purchase Requisition (PR) serves as a formal request made by a department or individual within an organization to procure specific goods or services. This document is essential in the purchasing process as it outlines the necessary items, quantities, and any pertinent details related to the request. By generating a PR, the requesting party ensures that the procurement process is initiated through proper channels, which helps maintain accountability and control over the organization's expenditures.

In contrast to a Purchase Requisition, a contract for service delivery is a legally binding agreement between parties that outlines terms and conditions for Service delivery. A payment authorization document is typically used to give consent for processing payments after goods or services have been acquired, rather than initiating the purchase itself. Lastly, a report on past purchases is a retrospective document that analyzes previous procurement activities and does not serve as a method for requesting new acquisitions. The distinction of a Purchase Requisition as a formal request is central to its role in the procurement cycle, making it crucial for effective spending management within an organization.