A requisition is simply a request for something within a business context. Generally, it's a formal request that has to be routed through a certain hierarchy for approval. Ultimately, if a requisition is approved, someone with the authority to make purchases will create a purchase order based on the requisition.
Requisitions have to be specific, accurate and provide sufficient detail so that those with the authority to make purchases will have no trouble sourcing the item. A requisition tracks the trail of acquisition from the initiator to the person who makes the purchase. After that, the purchase order becomes part of the document of record, along with paid invoices, receipts, and other related documents. Purchase Requisitions Purchase requisitions are the most common types of requisitions. For things other than everyday office supplies, generally, a person has to make a requisition and get it approved. For example, if a person's new project requires extensive travel, she may requisition a laptop computer to be more productive on the road. The requisition would have to be approved, someone in authority would decide what project or department pays for it, and then someone in purchasing would make an order based on the requisition. Requisitions are part of the system companies use to keep track of purchases and of the assets themselves once they are delivered. Hiring Requisitions Another type of requisition is the hiring requisition. If a department is in dire need of an extra clerk to handle administrative tasks, the department head may put in a hiring requisition. Once it's determined how the new employee position will be paid for, Human Resources can create a job ad in accordance with company policies. Industry or government regulations may require that certain positions be advertised in certain ways, and the requisition should indicate if this is the case. Hiring requisitions track information like staffing levels and hiring trends, so they can be useful even after someone new is brought on board. There are many other types of requisitions, and they depend heavily on your industry, what regulations your company is subject to, and the types of workflows your company has developed. Someone may, for example, requisition services rather than products. Suppose an office area was found to have an ant problem. Someone in the affected department may put in a requisition to have an exterminator come in and take care of it. The process would be similar to that used to requisition equipment, tools, or new employees.
