Requisitions are internal requests for products and services to be procured from an external source. The requisition transaction is also known as a purchase order request or purchase requisition. A requisition may include an approval process to adhere to budgets and other financial controls. A requisition is not a contract with a supplier to deliver goods or services.
There are multiple procurement activities that companies deal with. They are as follows:
These transactions are managed by issuing a purchase requisition followed by a purchase order, or just a purchase order. Requisitions are converted to purchase order and the purchase order is the contract with the supplier and gets processed for receiving and invoicing...