Purchase Requestion

[Former Member]

Hi,

Plz tell me uses for Purchase Requestion.

Defferent Between Purchase order and Purchaserequestion

[Former Member · Accepted solution]

hai;

A purchase Requisition is the document prior to Purchase Order which tells when and how much quantity of one or more materials needed and later it can be converted as a Purchase Order.

we can create purchase requisition manually or can be created by system after running the MRP.

Purchase order only we are sending to the vendor for which the corresponding purchase requisition will simplify the work of purchase department.

Hope You are clear.

[BijayKumarBarik]

Hi,

A purchase requisition notifies the purchasing department about the demand for materials or services.Purchase requisition is an internal purcahing document as demand of materials or services from any department to purcahing department.

Purchase Order is an external purcahing document and purcahing department request or instruct to the vendor to supplly material or provide service with predefind conditions.

For more check the links:

http://purchasing.dal.ca/Procedures/Purchasing_Options.php

http://www.yale.edu/ppdev/Procedures/purchase/PurchaseReq/Purchase_Req.pdf

Regards,

[Former Member]

Hello,

1)Purchase requisition is an internal document & purchase order is an external document (To be sent to vendor).

2)PR 's can be used as reference documents for creating POs. No specific benefits as such, all the documents are beneficial to carry out business.

3)There is a std t-code for PO printing in SAP, but not for PR printing, since its an internal document.

Still some more differences can be enlisted.

Hope the above points are sufficient enough to answer your query.

Regards

Mahesh

[JL23]

pruchase requisition is an internal document, used to submit the need from any department to purchasing department.

purchase order is the document used from purchasing to communicate with the vendor.

[Former Member]

A purchase requisition is an authorization for a purchasing department to procure goods or services. It is originated and approved by the department requiring the goods or services. Typically, it contains a description and quantity of the goods or services to be purchased, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included.

A purchase requisition is owned by the originating department and should not be changed by the purchasing department without obtaining approval from the originating department. This important distinction (e.g. essential control) is not clearly defined in some of the more popular integrated procurement software systems on the market today.

In some industrial (e.g. production line) environments, the purchasing department may be assigned responsibility for requesting and purchasing goods. This is especially true for raw material purchases where the purchasing department is also responsible for inventory management.

A purchase requisition is not a purchase order and therefore should never be used to purchase goods or services or be used as an authorization to pay an invoice from a supplier or service provider.

A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a one-off contract between the buyer and seller, so no contract exists until the PO is accepted.

There are several reasons why companies use POs. They allow buyers to clearly and explicitly communicate their intentions to sellers, and to protect the seller in the event of a buyer's refusal to pay for goods or services. For example, say Alice works for Company A and orders some parts from Company B. There could be a problem if Alice was not actually authorized to issue this purchase order u2014 perhaps due to a miscommunication, the employee believed to have the boss's permission to place the order. Once this error is discovered the order is canceled. Depending on the type of product being ordered, and at what stage the PO was canceled, Company B may incur manufacturing costs (labor, raw material, etc.) as well as shipping and packing costs. They might also lose the product entirely (for example, if it is perishable).

To prevent such problems, sellers often request purchase orders from buyers. This document represents the buyeru2019s intent to purchase specific quantities of product at specified prices. In the event of non-payment, the seller can use the PO as a legal document in a court of law to demonstrate the buyeru2019s intent and to facilitate collection efforts. Companies usually request POs when doing business with other companies for orders of significant size, as the PO reduces the risks involved.

In the course of the accounts payable process, purchase orders are matched with invoices and packing slips before the invoices are paid. The purchase order is a contract between the seller and buyer that details pricing, delivery and the products or merchandise. It is used for internal control in business so that costs are identified prior to the receipt of the invoice. It is also the basis to contest an invoice should the purchase order and invoice not be in agreement.

Regards,

Indranil