Key Differences Purchase Requisitions vs Purchase Orders

A purchase requisition is a type of document that lists the merchandise needed by a specific department. This document allows purchases to be requested. In the purchasing process, it takes place when a department states they need a certain item. The purchase requisition lists the items and quantity desired, and it goes to the purchasing department. Then the purchasing department derives a purchase order to be sent to the vendor. Requisitions inform managers or purchasing departments of the product requested to be purchased, and should include the following details:

• Department/Team-member making the request for a purchase
• Purchase requisition number
• Item description
• Item quantity
• Price
• Legal supplier name

Purchase requisitions basically show what needs to be purchased for the business and also detail why they are necessary in order to obtain approval. Depending on the company and industry, requisitions may be required for certain purchases where prior approval is needed or for example if it is over an allocated set price limit.

Types of Purchase Requisition

Understanding the different types of purchase requisitions is essential for streamlining procurement processes and ensuring that every purchase aligns with business needs. Each type serves a specific purpose within the organisation, helping teams manage budgets, maintain inventory levels, and respond effectively to operational demands.

Standard Requisition

A standard requisition is the most frequently used type and applies to routine purchases of goods or services. These are typically predictable, recurring needs such as office supplies, raw materials, or maintenance services. Standard requisitions help maintain consistency in procurement and ensure that everyday operations run smoothly without interruption.

Emergency Requisition

An emergency requisition is raised when there is an urgent need for goods or services that cannot wait for the usual approval cycle. This often occurs in situations where delays could lead to production stoppages, safety risks, or significant financial losses. Emergency requisitions prioritise speed and flexibility, allowing businesses to respond quickly to unexpected challenges.

Planned Requisition

Planned requisitions are created for scheduled procurement activities that align with forecasts or long-term operational plans. For example, a manufacturing company may raise planned requisitions for raw materials based on seasonal demand projections. This type of requisition supports proactive inventory management and helps avoid last-minute shortages.

Contractual Requisition

A contractual requisition is linked to long-term agreements or supplier contracts. These requisitions are often used when businesses have negotiated pricing, delivery schedules, and terms with preferred vendors. By leveraging contractual requisitions, companies can maintain compliance with negotiated agreements and benefit from cost savings through bulk or repeat orders.

To optimise for clarity and keyword targeting, here are common types of purchase requisitions:

• Standard Requisition: For routine purchases of goods or services.
• Emergency Requisition: For urgent needs where delays could impact operations.
• Planned Requisition: For scheduled procurement aligned with forecasts
• Contractual Requisition: Linked to long-term agreements or supplier contracts.

Purchase Requisition Notes

A purchase requisition note is a supporting document that accompanies the requisition form. It typically includes additional details such as justification for the purchase, budget codes, and any special instructions. While the requisition form captures the essentials (items, quantity, price), the note provides context for approval and compliance.

A purchase order is a document that’s used to pay for a product or service. It’s used in place of cash and sets a contractual date for payment to be made later down the track. A purchase order can be useful for keeping track of items you've bought.

• Example: if you ordered 150 surfboards, and only 120 arrive, you can get in touch with the supplier to see where they ended up since you're missing 30 surfboards. A purchase order also helps you track pricing and buying history.

Purchase orders eventuate when management/purchasing department has approved the purchase requisition, or when there is no need for a purchasing requisition – you simply create a purchase order because no prior or necessary authorisation is needed. Once the purchasing department or personnel has a purchase order, it is sent to the supplier. A purchase order is usually created through electronic purchasing systems that can be automated. Not only does this streamline this process, but it enables easy tracking and simple electronic submissions to suppliers. Purchase orders should typically include:

• Business name making the purchase
• Purchase order number
• Item description
• Item quantity
• Price
• Mailing address for supplier fulfilling the order
• Payment terms
• Invoice address for your business

Purchase requisitions are a request for a purchase and a purchase order is a confirmation that an order for a good or service has been placed.

Purchase requisitions are created by employees. Purchase orders are completed by your company’s purchasing department or managerial staff.

Purchase requisitions are processed after an employee notes that an inventory item is running low. They place the requisition when there is demand for this item. A purchase order is sent through when an order needs to be processed for specific goods or services.

An external vendor receives the purchase order, whereas the company purchasing department gets the purchase requisition from employees.

The purchase requisition is an internal document that sits within the company and the purchase order is an external document that goes to a vendor.

• Requisition refers to the internal request for goods or services within the company.
• Acquisition refers to the actual act of obtaining those goods or services from an external source.

This distinction is important for understanding procurement terminology and compliance processes.

Both purchase requisitions and purchase orders play a critical role in:

Budget Management

With UK SMEs reporting 38.4% gross margins and Australian SMEs at 36.0%, margin control is vital.

Requisitions ensure purchases are authorised and aligned with financial plans, preventing overspending in volatile markets.

Inventory Control

Q2 2025 saw purchase orders surge by 85–136% across regions, and excess stock values more than doubled in the UK and Australia.

These trends underline the importance of structured purchasing to avoid shortages and manage cash flow effectively.They help track stock levels, prevent shortages, and maintain operational efficiency.

Audit Compliance

Rising stock levels (UK excess stock up 206% QoQ) make accurate documentation essential for financial transparency and compliance.

Supplier Relationships:

Longer lead times (UK 27 days, AU 25 days, NZ 23 days) mean businesses must plan and maintain clear communication with vendors to avoid delays and disputes.

By standardising these processes, businesses can optimise costs, maintain accurate records, and ensure smooth supply chain operations.

Automation within inventory management systems, such as Unleashed, makes raising PO simple. 

Purchased orders can be pre-filled with supplier information and sent within minutes. Once the goods arrive, the purchasing can easily record receipt in the system. Stock levels will automatically update and synchronise with accounting records.

Try our inventory management software for yourself. Start your 14-day free trial today!