Are you tired of juggling documents and struggling to keep track of company spending? Imagine having all your purchase and sourcing data in one place. A purchase requisition system can make this a reality.
It automates approvals, reduces errors, and helps control costs. Tools like ProcureDesk offer user-friendly purchase requisition automation so you can cut manual work and get full visibility into spending.
This article will teach you how to create a purchase requisition system that makes sense for your company. Most companies witness a remarkable 30-40% reduction in the time it takes to create a purchase requisition by using this purchase requisition process.
In this article, we’ll delve into:
- Designing an Effective Requisition Process: Learn how to structure your requisition process to slash approval times.
- Options for Purchase Requisition Systems: Explore a range of purchase requisition software options, from free solutions to paid ones, to find what fits your needs.
- Essential Features in a Purchasing System: Learn how to set up the requisition process in purchasing workflows and understand the must-have features to make your purchase requisition system effective.
Want help creating an automated purchase requisition system that’s easy to use for employees? We built ProcureDesk to handle that and more! We’ll even help set everything up for you during onboarding. Click here to see it in action
What Is A Purchase Requisition System?
A purchase requisition system (also called a requisition management system) is a digital platform used to manage purchase requests, approvals, and tracking.
It streamlines the purchase request process, moving internal requests from employees to the procurement department or finance team. This gives your team better visibility, control, and efficiency across your requisition process and spend.
Whether you’re using it to improve compliance, reduce delays, or automate approvals, a requisition solution supports every step of the workflow purchase requisition process.
With ProcureDesk, all this happens in one tool—no spreadsheets, no email chains. To break it down, here are the key functions of a purchase requisition system.
Creates Purchase Requisitions
Employees can use a purchase requisition system to submit purchase requests for goods or services they need. This keeps the requisition process organized and efficient.
Each purchase request includes details, quantity, cost, supplier, and the reason for purchasing the requested items. It can also include the department’s budget code for tracking.
Approves Workflow
Requests are routed through pre-set approval workflows based on amount, category, or department. This step ensures a smooth purchase requisition workflow.
Managers and approvers can review, approve, or reject each request. Approver roles can include department heads, finance leads, or procurement teams.
Generates Purchase Order
Once a requisition is approved, the system automatically generates a purchase order (PO) based on the details. The PO is then sent to your preferred vendors.
Tracks And Reports Data
The system provides a central repository for all purchase requisitions and status updates. This allows for easy tracking of the approval process, budget utilization, supplier performance, and a clean audit trail.
Reports can be generated to review expenditures, analyze spending patterns, identify potential cost savings, and ensure company policies and regulations compliance.
What Are The Steps Involved in a Purchase Requisition Process?
These are the core steps in a typical purchase requisition process flow. You can automate each one using a tool like ProcureDesk.
- Purchase Request Initiation
- Approval Workflow
- Create and Send Purchase Order
Step 1: Purchase Requests Initiation
The first step in a purchase requisition process is initiating a purchase request.
In this step, an employee submits a request to purchase a product or service.
The basic information that is being captured is as follows:
- What is this purchase for? The business purpose of the purchase. For example, IT setup for a new hire.
- What are you purchasing, and from whom? For example, a new laptop from CDW.
- Which department is going to pay for it, and how is the cost booked? The employees are identifying the department as well as the chart of accounts.
- Who needs to approve the purchase request? If you have a manual process, employees must remember the approval matrix.
In a manual process, employees need to find the form, know who approves it, and fill out every detail. This leads to mistakes and wasted time.
With a tool like ProcureDesk, employees can submit purchase requests in just a few clicks. No need to memorize the approval matrix.
Step 2: Approval Workflow
Once the request is created, employees submit it per the approval matrix.
Most companies have an approval or authorization matrix—for example, a spend over $500 must be approved by a director, and so on.
Manual approval workflows create two big bottlenecks:
- Complex approval chains with multiple approvers
- Managers forget to approve because it’s all done by email
Companies have a complex approval matrix. Sometimes a single requisition needs 2-3 approvals. How many people need to approve a requisition before you can make the purchase?
The thought process is that we should have tighter control over spend.
We agree, and we preach that, but…
It would be best if you also had accountability to trust the line managers or directors to do their job.
The second issue we see is that the purchasing requisition procedure is manual. You create a request form and email it to the manager for approval.
The process is simple, but managers forget to approve the request. The approval gets lost, and so on. In many cases, the requestor might also forget about it. This becomes a major bottleneck.
To avoid all these issues, automate the approval process with an electronic purchase requisition system so employees don’t waste time chasing purchase approvals. ProcureDesk helps automate the approval process. No more email chains. No more chasing approvals. Just a smooth purchase requisition flow.
Step 3: Trigger To Create POs
The last step in the process is to convert a requisition into a purchase order.
After that, send the purchase order to the vendor after assigning a purchase order number.
Not every requisition needs to be converted into a purchase order. Some items may be pulled from stock or ordered by phone. But the request still goes through the same process for tracking and approval.
For example, you can use the requisition system to issue office supplies you have in stock at your location.
Or you probably need to place the order by calling the vendor.
There are a few things to consider here:
Can you automate the conversion of requisition to purchase orders? If so, you don’t have to manually convert every requisition into a purchase order.
Set up rules so you can easily decide what requisitions to convert to a purchase order. For example, you can have a flag at a vendor level so that you know how an order needs to be placed. With ProcureDesk, you can automate PO creation. We help set rules to convert purchase requisitions into POs based on vendor, category, or value.
For example, you can have a flag at a vendor level so that you know how an order needs to be placed.
To recap, here’s the typical purchase requisition process flow:
- Create a purchase requisition
- Route it through the approval workflow
- Convert it into a purchase order and send to the vendor
Automating Your Purchase Requisition System With Procurement Software
So far, we’ve covered what a purchase requisition system does and why it matters. Now, let’s walk through how automation solves real problems—like delays, errors, back-and-forth emails, and spend management.
In this section, we’ll show how ProcureDesk’s procurement system automates your purchase requisition workflow from request to purchase order. You’ll also see how each automation process helps your team save time, reduce spend, and stay in control.
Purchase Request
The first step is simple: let employees submit purchase requests without the hassle. ProcureDesk replaces manual forms with a smart, easy-to-use interface. No spreadsheets. No guesswork. Just a few clicks to create a requisition.
With ProcureDesk, you can:
- Route different types of requests (like IT vs office supplies) through different workflows
- Auto-fill fields like department, location, and chart of accounts
- Let employees leave notes for buyers or vendors
- Customize line-item fields to match your business needs
This helps you achieve two main goals:
1. Simplify the process for creating a requisition.
2. Increase employee productivity so that they are not spending a lot of time on data entry to create a requisition.
Here is what a sample requisition form looks like:
Catalogs
In the previous section, we mentioned that the goal of purchase request automation capabilities is to simplify the purchasing process.
And there is no better way to simplify the purchasing process than using supplier catalogs.
We have covered this topic in detail in the catalog and purchasing experience article.
But here is a summary:
Catalogs enable employees to create requisitions by browsing and selecting the items they want to purchase.
That way, they are not spending time manually entering line item details.
For example, you purchase office supplies from a local vendor. They offer you a standard rate card for the items you purchase from them.
It would be best to create a catalog so that users can easily select items they want to purchase.
Here is how simple a catalog process is:
Sometimes, it is not feasible to maintain a vendor catalog because of the number of items they sell. So, instead, you can link your purchasing system to the vendor’s website. This type of catalog is called a punchout catalog.
This allows employees to browse the catalog and pick what they need to buy but still get the data back to the requisition for approval.
The punchout catalog is a win-win scenario. ProcureDesk supports vendor catalogs, so employees can shop like they do online. Instead of typing item details, they just add what they need to the cart. This cuts down on mistakes and speeds up the requisition process.
Employees don’t need to type in the data, and companies have complete control of what is being purchased.
Here is an example of a punchout catalog inside ProcureDesk:
Automation Rules For Accounting Defaults
Employees’ biggest frustration is not knowing what accounting codes to use on the purchase requisition.
That leads to many guesswork and back-and-forth emails with the accounting department.
To take the guesswork out of the equation, ProcureDesk supports three types of accounting defaults:
User-Based Accounting Defaults
Auto-fill common codes based on the employee’s department or past requests.
For example, If an employee purchases office supplies most of the time, you must set their default code to “Office Supplies.”
Supplier-based Accounting Defaults:
Set standard codes for vendors who provide a specific type of item (like lab supplies).
For example, If you are a Biotech company and all you purchase from a vendor is lab supplies, then you can set the default for that vendor.
So, no matter who purchased from that vendor, the default supplier accounting code would be used.
Item-Based Accounting Defaults
Assign granular codes to specific products—great for biotech and other detailed categories.
For example, a biotech company purchasing lab equipment and lab supplies from a vendor would not have a common supplier-level default.
So, in this case, you can set up a catalog of items, and for each item, you can set up an accounting default.
This allows you to assign granular accounting codes to each item, leading to better accounting data.
Most of our customers use the combination of these three strategies to simplify the purchasing process.
Purchase Requisition Approval Workflow
As soon as a purchase request is submitted, ProcureDesk routes it through the right approval workflow automatically. No one needs to look up an authorization matrix.
The requisition system generates the workflow based on the pre-configured conditions. Everything aligns and goes where it should.
The purchasing team should have complete flexibility to define different workflows. For example, if you want to route a requisition based on what is being purchased or the $ amount.
You can set up workflows based on department, dollar amount, or request type. Need capital purchases routed to a project team? No problem. Every approval is tracked in an audit log—perfect for compliance and trails.
Here is an example of a multi-step workflow with conditional routing:
However, the system dynamically identifies the correct workflow based on predefined conditions.
Ease Of Approval
Once the request is sent for approval, the approvers should be able to approve the requisition with ease.
We suggest an omnichannel approval strategy so that approvers can easily approve.
ProcureDesk supports fast, flexible approvals from:
Mobile App
With a mobile app, the approvers get notifications and can approve the official documents. ProcureDesk works on both iOS and Android.
Employees can approve the purchase requisition faster and don’t have to be at their desks for approvals.
Email Approval
Some people live in their inbox, and we get it!
That is why it is important to have the flexibility to support approvals only through email.
With email approval notifications, employees can see the detailed data in email so they can confidently approve.
Review Of Approval
Mobile apps and emails are great for conveniently approving invoices. However, sometimes, you need the ability to review the official documents, make any required changes, and approve the document.
That is why it is important to have the ability to review the document and edit it before approving it.
It is beneficial for finance teams to review the items, fix the chart of accounts, and then approve the requisition.
That way, you can ensure you don’t have to correct the downstream documents like invoices and bills.
Purchase Orders
Once approved, a requisition becomes a purchase order. ProcureDesk gives you control over how and when that happens.
We do the following:
Manual Or Automated Rules For PO Creation
Based on the structure of your team, you may or may not want to automate the process of converting a requisition into a purchase order.
For example, some companies have internal stock of items like office supplies. So once the user enters the requisition, all that needs to be done is to issue the item to the employee.
In this case, no purchase order is required.
Another example is website orders. For example, you need to purchase something from a big-box retailer that doesn’t accept purchase orders.
In that case, a requisition doesn’t need to be converted into a purchase order.
ProcureDesk gives you the flexibility to convert a requisition into a purchase order or manually review the purchase order.
Need to avoid extra shipping fees? ProcureDesk lets you merge multiple purchase requisitions into a single PO. This is great for lab or office supply orders where many vendors still charge shipping for orders under a certain threshold.
ProcureDesk lets you combine the different requisitions into a single purchase order. Or manually review a purchase requisition and decide the next steps.
This not only simplifies order tracking, but it also saves you costs on shipping charges.
Track And Receive Orders
With ProcureDesk, you can track each order’s delivery date, shipment status, mark items as received, and attach packing slips or delivery notes. You’ll know exactly what was ordered, when it arrived, and what’s still outstanding.
For example, you can enter a tracking number and the system can track your delivery status.
Moreover, when the delivery is made, the system updates you that your order has been delivered.
Once the order is received, the person who received the product can mark the order as received and attach any supporting documents.
If you want to learn more about how ProcureDesk can help automate your purchase requisition and purchasing processes, you can book a demo.
What Are The Benefits Of Automating Your Purchase Requisition Process?
Automating your purchase requisition process offers many benefits for businesses of all sizes. Here are some key advantages:
Increased Efficiency
- Faster processing times: Automation eliminates manual tasks like paper forms, routing approvals, and data entry, significantly speeding up the requisition process.
- Reduced errors: Automated workflows decrease the risk of human errors in data entry, approval routing, and document management.
- Improved productivity: Employees are freed from tedious tasks, allowing them to focus on more strategic and valuable work.
Enhanced Control and Visibility
- Greater budget control: Real-time budget tracking and spending insights facilitate responsible decision-making and prevent unauthorized purchases.
- Streamlined compliance: Automated workflows ensure adherence to company policies and regulations, minimizing compliance risks.
- Improved transparency: All requisition history and data are readily accessible, providing complete visibility into spending patterns and vendor performance.
Cost Savings
- Reduced paper handling and storage costs: Eliminating paper forms and documents streamlines document management and saves on printing and storage space.
- Lower processing costs: Automation reduces the need for manual processing, minimizing labor costs and administrative overhead.
- Better supplier negotiations: Consolidated spending data from automated systems offers stronger bargaining power when negotiating with suppliers.
Other Advantages
- Improved supplier relationships: Faster order placement and clear communication enhance vendor communication and satisfaction.
- Enhanced data analysis: Automated systems provide valuable insights for optimizing purchasing decisions and identifying cost-saving opportunities.
- Scalability and flexibility: Automated systems can easily adapt to changing business needs and handle increased requisition volume.
The Bottomline on Purchase Requisition Systems
Using a purchase requisition system, our clients see the following benefits under 30 days
- 30-40% reduction in time spent on creating and approving purchase requisitions.
- 8-10% cost reduction because of cost avoidance. Since management can see the purchase before it happens, they can control the spending.
- 5-10% reduction in stockouts because of misplaced orders. With a central purchase order tracking process, orders cannot be lost.
It’s time to skip the manual purchase requisition process. Replace every purchase request procedure with customizable workflows in ProcureDesk to save time, reduce spending, and prevent stockouts. Our team will help you set up all of the custom workflows you need during onboarding. Just book a demo and we’ll walk you through the next steps.
FAQs About Purchase Requisition Systems
What Are The Disadvantages Of Manual Requisition?
Compared to digital systems, manual requisitions suffer from several disadvantages, such as:
- Inefficiency: Paper forms, routing approvals, and data entry are slow and require manual effort.
- Lack of control: Paper documents are vulnerable to loss, damage, and unauthorized access. Aside from that, manual processes offer more opportunities for fraudulent activity.
- Limited communication: Information gets stuck in paper trails or email chains, slowing approvals. Manual workflows also make it harder for different departments to collaborate on requisitions.
Purchase Requisition vs Purchase Order
Employees often have the same question: What is a purchase request vs purchase order? Let’s break down the difference in function, approval process, content, and legality:
Function:
- Purchase Requisition: Internal document requesting permission to purchase goods or services. Initiates the buying process internally.
- Purchase Order: External document sent to a supplier to confirm the purchase of goods or services. Represents a binding agreement with the supplier.
Approval process:
- Purchase Requisition: Requires internal approvals from budget managers, department heads, etc., before progressing.
- Purchase Order: Usually issued only after an approved purchase requisition.
Content:
- Purchase Requisition: Includes item details, quantity, estimated cost, justification for purchase, and requesting department.
- Purchase Order: Similar to a requisition but also includes agreed-upon price, payment terms, delivery details, and purchase order number.
Legality:
- Purchase Requisition: Not a legal document. No binding commitment to the supplier.
- Purchase Order: A legally binding contract between the buyer and the supplier. Creates an obligation to pay.
How Does a Purchase Requisition System Improve Budget Control?
A purchase requisition system improves budget control by requiring approvals before any money is spent. It assigns the correct chart of accounts, ensures budget limits are followed, and tracks every request in real time. With tools like ProcureDesk, finance teams can monitor spend by department, vendor, or category—helping them stay on budget and avoid surprises.
Can I Create Requisitions from My Phone?
Yes. With ProcureDesk’s mobile app, employees can create and submit purchase requisitions right from their phones. The app works on both iOS and Android, so stakeholders can request purchases anytime, anywhere. This is a key feature for deskless workers or those who are not always in front of a computer.
What Is a Purchase Requisition Processor?
A purchase requisition processor is either a person or software that manages the flow of purchase requests from creation to approval. In manual systems, this is often handled by admin or procurement staff. With ProcureDesk, the software handles requisition processing automatically—routing requests, enforcing rules, and generating purchase orders when approved.
Should a Purchase Requisition System Integrate with Other Finance Tools?
Yes. Purchase requisition systems like ProcureDesk integrate with tools you already use like QuickBooks, Xero, ERP systems, or other accounts payable platforms. Integration means you don’t have to enter the same data twice. Approved requests flow straight into your finance system. That saves time, cuts down on errors, and keeps your team focused on more important work.
