What is a Purchase Requisition (PR)?

A Purchase Requisition (PR) is accurately defined as a request to a supplier for material or services before it is converted into a Purchase Order (PO). This process is essential in the supply chain and procurement functions, as it initiates the purchasing process within an organization. By creating a PR, personnel indicate their need for specific items or services, allowing for proper documentation and approval workflows before making a formal commitment through a PO.

This function not only helps in tracking and managing inventory levels but also ensures that the necessary approvals are in place to maintain financial controls and compliance with procurement policies. The comprehensive nature of a Purchase Requisition allows organizations to streamline communication regarding purchases, minimizing the potential for errors and misunderstandings later in the procurement process.