PURCHASE REQUISITION GUIDEBOOK

1.   WHAT IS PURCHASE REQUISITION?

A purchase requisition is a transaction submitted by an employee to request the purchase of goods or services on behalf of the company. These purchases may be for business operations, inventory, or to manufacture products for sale. Submitting a purchase requisition will set off the purchasing process.

In a Purchase Requisition, the employee lists the details of all the items they need from an external vendor, and they submit the form to their line manager and eventually the purchasing department for approval. The employee is actually not placing orders for goods or services, but rather asking for permission from the purchasing department to get the items.

IS PURCHASE REQUISITION MANDATORY?

No, not all companies use purchase requisition in their purchasing process. Some use them only when the proposed purchase exceeds a specific amount. For small purchases, these companies allow internal departments to source the items directly from preferred vendors and complete payment using corporate credit cards, skipping the process of purchase requisition.

It is okay for companies to make purchase requisition optional, since they are not legal transactions. A purchase requisition printed out is just an internal document that details an employee’s request for items, and it has no value outside the firm. 

2. SETUP FOR PURCHASE REQUISITION?

Setting up Purchase Requisition is a 4-step process, as follow:

2.1 Setup Users To Access Purchase Requisition (SR Transaction)

Users must be able to access the menu for Purchase Requisition.

2.2 Setup Users for Approval Process

The default setting for Enforce Purchase Requisition Approval is turned off (no approval needed). Administrator must turn it on and define which users approve, or approve-on-behalf. 

1. For specific users, go to User Maintenance > Approval tab
2. On “Enforce Purchase Requisition Approval” for User/Requestor.
3. On “Can approve/Can approve on behalf of” for Approver.

2.3 Setup Email Notification Process

System will send notification for the respective users who need to approve the requisitions. Therefore the email setting is required, for the system to send out the emails.

1. Go to System Manager > Email Setting
2. Fill in the email information.
3. Click Save.

2.4  Setup Purchase Requisition Document Printing (REPX Design)

3. HOW TO ENTER A PURCHASE REQUISITION REQUEST?

Open the Purchase Requisition transaction screen (SR), and ADD a new transaction as follows:

Next > go to Approval tab

1. Select the Approver 1 & Approver 2 (optional) and click “Submit” 
2. Approval history will prompt submitted message. 
3. Click Submit
4. Approval history will show submit details
5. Save