Purchase requisition

  

Purchase requisition overview

A purchase requisition is an internal document that authorizes the Purchasing department to buy items or services.

After a purchase requisition is approved, it can be used to generate a purchase order. Purchase orders are the external documents that the Purchasing department submits to vendors.

You can create a purchase requisition by select the items and services that you require. You can select items from a procurement catalog that your organization has created, or you can request items that aren't found in a catalog by selecting a procurement category and entering the product details.

Before submitting a purchase requisition for review, workflows must be configured. You use a workflow to move a purchase requisition through the review process, from an initial status of Draft to a final status of Approved.

You can configure the purchase requisition workflow process to route a purchase requisition through the review process as a single document. Alternatively, the lines on a purchase requisition can be routed individually to the appropriate reviewers. If the purchase requisition lines are reviewed individually, the status of each purchase requisition line can be updated as the line moves through the review process.

 

 

 

 

 

 

 

 

 

 

Purchase requisition workflow

 

The following diagram shows the statuses that are assigned to a purchase requisition and a purchase requisition line as they move through the workflow process.

 

 

 

 

 

 

 

 

 

 

 

Purchase requisition header and line status relationships

 

The overall status of a purchase requisition is determined by the status of the purchase requisition lines. Therefore, the review process must be completed for all purchase requisition lines before the review process for the whole purchase requisition can be completed. The following table describes the statuses that are assigned to a purchase requisition header and lines as the purchase requisition moves through the workflow process.

 

Purchase requisition status	Purchase requisition line status	Description
Draft	Draft	The purchase requisition and purchase requisition line have been created, but they haven't been submitted for review. Purchase requisitions and purchase requisition lines that have a status of Draft can be modified. A purchase requisition or purchase requisition line also has a status of Draft if it has been recalled but hasn't been resubmitted for review. Note: You can submit or recall a purchase requisition at the document level. However, you can't submit or recall a single purchase requisition line.
In review	·        In review ·        Rejected	If the workflow has been configured to route purchase requisition lines to individual reviewers, each line can have a status of In review or Rejected. The purchase requisition status is updated when the review process is completed for all purchase requisition lines and no review steps remain for the purchase requisition. ·        In review – The purchase requisition lines have been submitted for review. When the workflow process is completed for a purchase requisition line, the status of that line remains In review until all remaining purchase requisition lines have been reviewed. ·        Rejected – A purchase requisition line has been rejected. Purchase requisition lines that are rejected can be modified and resubmitted. If you resubmit a purchase requisition line that has been rejected, the review process starts over for all lines in the purchase requisition that are still in review. Note: You can recall a purchase requisition that has already been submitted. When you recall a purchase requisition, all other purchase requisition lines are also recalled. Purchase requisition lines that have been recalled can be deleted.
Rejected	Rejected	The purchase requisition and all purchase requisition lines have been rejected. Purchase requisitions and purchase requisition lines that have been rejected can be resubmitted.
Approved	·        Approved ·        Cancelled ·        Closed	All purchase requisition lines have completed the review process, and there are no more review steps for the purchase requisition. ·        Approved – The review process for a purchase requisition line has been completed, and the line is approved. ·        Cancelled – The purchase requisition line was approved, but it has been canceled because it's no longer required. Only purchase requisition lines that have been approved can be canceled. ·        Closed – The purchase requisition line was approved, and documents have been generated, depending on the requisition purpose. o   If the requisition purpose is consumption, a purchase order has been generated for the purchase requisition line. o   If the requisition purpose is replenishment, one or more fulfillment documents have been generated.
Cancelled	Cancelled	The purchase requisition and all purchase requisition lines have been canceled. Note: If you no longer require an item that is on a purchase requisition line, you must cancel the purchase requisition line if it has already been approved. Only purchase requisition lines that have been approved can be canceled. If any purchase requisition lines are in review, the purchase requisition will have a status of In review. In this case, you can recall the purchase requisition and delete the appropriate purchase requisition line.
Closed	·        Closed ·        Cancelled	The purchase requisition is closed, and one or more fulfillment documents have been generated. ·        Closed – The purchase requisition line was approved, and documents have been generated, depending on the requisition purpose. o   If the requisition purpose is consumption, a purchase order has been generated for the purchase requisition line. o   If the requisition purpose is replenishment, one or more fulfillment documents have been generated. ·        Cancelled – The purchase requisition line was approved, but it has been canceled because it's no longer required. Only purchase requisition lines that have been approved can be canceled. Note: If you no longer require an item on a purchase requisition line that has been closed, you must cancel the line on the fulfillment document that was generated for the purchase requisition line.

 

 

 

 

 

 

 

 

 

Distributing costs to multiple financial accounts

You can distribute the cost of a product that is included in a purchase requisition to multiple financial accounts. If your organization uses dimensions, such as cost centers and departments, you can distribute the cost of a product to dimensions for financial accounts

 

Requisition purposes

Requisition purposes make the process of fulfilling requisition demand more flexible. When you create a requisition, you can assign one of two purposes to it: consumption or replenishment. Depending on the requisition purpose and the setup of your organization, requisition demand can be fulfilled by a purchase order, transfer order, production order, or kanban.

In the procurement policies, you can control the requisition purposes that are available when a requisition is created for your organization.

 

Requisitions that have a purpose of consumption

A requisition that has a purpose of consumption represents demand for items or services that will be used internally by your organization. The demand that is created by this kind of requisition is always fulfilled by a purchase order. If Supply Chain Management is set up to automatically generate purchase orders, purchase orders are created after the purchase requisition is approved.