What Is a Purchase Requisition & why it’s important in Procurement to Pay-P2P?

What Is a Purchase Requisition?
A purchase requisition is a document used as part of the accounting process to initiate a merchandise or supply purchase. By processing a purchase requisition, appropriate controls can monitor the legitimacy of a purchase, as well as identify the business need for the products.
In the normal course of business, many supplies or pieces of equipment are needed. The purchases may be for products needed for business operations, such as office supplies, manufacturing, or printing needs. Purchase requisitions can also be used for inventory purchases or manufacturing supplies to create products for re-sale. Purchase requisitions are very common within government agencies as they will issue a requisition to authorize purchases and expenditures.
The Importance of Purchase Requisitions in Procurement.
Purchase requisitions are used when a procurement staff needs to make a purchase or an order request on behalf of their organization. It is a request raised to inform department managers or the purchasing officer of the decision, so that the procurement department can start the buying process. The finance department will also use this requisition to manage reporting procedures with the accounting team as well.
In any company, there is always the need for goods and services. When departmental managers are allowed to place orders directly with the suppliers, there is a possibility of fraud.
To prevent fraud, the purchasing team is required to place orders with the suppliers and to manage purchase requisition workflow. A purchase requisition process within the procurement department ensures that fraud is prevented, and the organizations get the value for their money.

[@vaibhavtalekar6699]

Perfectly quoted in video at 15.17 "Don't try to create the history, if history is already made then we have to refer history and recreate the new history."🤞🤞

[@rachanakute9964]

Thank you so much sir

[@AccountsGurukul]

You're welcome.....