Which document follows a Purchase Requisition once it receives approval?

Once a Purchase Requisition receives approval, the next step in the procurement process is the creation of a Purchase Order (PO). The Purchase Requisition serves as an internal request to procure goods or services, detailing what is needed, why it is needed, and how much is expected to be spent. Upon approval, this document transitions into a Purchase Order, which serves as a formal agreement between the buyer (the organization) and the supplier.

The Purchase Order contains specific information such as quantities, prices, delivery details, and payment terms, thereby establishing legally binding results with the vendor. This document is essential for initiating the transaction and allowing for the subsequent processes in the supply chain, such as receiving the goods and processing invoices.

Following the Purchase Order, other documents like invoices and delivery receipts may come into play, but they occur after the Purchase Order has been established. The Purchase Order is critical as it aligns the procurement function with the overall budgeting and spending control processes within organizations like GFEBS.