What is a purchase requisition?
A purchase requisition is an internal document used to request goods or services before a purchase order is issued.
Who typically approves a purchase requisition?
Requisitions are reviewed by an authorized manager to ensure necessity and budget compliance.
What does a purchase order (PO) represent?
A purchase order is a formal document issued to a supplier to initiate a purchase.
Why is order processing important in purchasing?
Proper order processing ensures accuracy, timeliness, and fulfillment of procurement requests.
What document is often matched with a PO to confirm receipt?
A receiving report verifies that the items ordered were delivered and match the purchase order.
What is a benefit of electronic procurement systems?
E-procurement streamlines requisition, approval, and ordering processes with automation.
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What does the term 'three-way match' refer to?
A three-way match compares the PO, invoice, and receiving report to ensure accuracy before payment.
Why is it important to include item specifications in a requisition?
Clear specifications reduce errors and ensure the correct items are purchased.
What step follows purchase order issuance?
After issuing the PO, the supplier processes the order and arranges shipment or service delivery.