Structure
A purchase requisition is a request sent to the purchasing department to procure goods or services. It is originated and approved by the department requiring the goods or services. Typically, it contains a description and quantity of the goods or services to be purchased, preferred make, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included.
A purchase requisition is owned by the originating department and should not be changed by the purchasing department without obtaining approval from the originating department. This important distinction (e.g. essential control) is not clearly defined in some of the more popular integrated procurement software systems on the market today.
A purchase from a taxation point of view is also a cost that depletes profits that reduces a tax liability, the onus lies with the originator to prove the cost incurred is for generating income or to better a service to promote sale that fulfills an objective, whilst ensuring valuable resources are best used and not wasted in the interest of the company.
In some industrial (e.g. production line) environments, the purchasing department may be assigned responsibility for requesting and purchasing goods. This is especially true for raw material purchases where the purchasing department is also responsible for inventory management.
A purchase requisition is not a purchase order and therefore should never be used to purchase goods or services or be used as an authorization to pay an invoice from a supplier or service provider.
Purchase Requisition Checklist Status Authorized Currency INR / USD (or) Others Inspection By Vendor / VA Tech / TPIA / Client Approved vendor list Variation Report Specifications Quantity and Unit Others (Drawings, SLD, etc.,.) Inspection Requirements Price Basis (if export project) Packing Requirements Operational Conditions (If required)
Read more about this topic: Purchase Requisition
Famous quotes containing the word structure:
“Just as a new scientific discovery manifests something that was already latent in the order of nature, and at the same time is logically related to the total structure of the existing science, so the new poem manifests something that was already latent in the order of words.”
—Northrop Frye (b. 1912)
“There is no such thing as a language, not if a language is anything like what many philosophers and linguists have supposed. There is therefore no such thing to be learned, mastered, or born with. We must give up the idea of a clearly defined shared structure which language-users acquire and then apply to cases.”
—Donald Davidson (b. 1917)
“... the structure of a page of good prose is, analyzed logically, not something frozen but the vibrating of a bridge, which changes with every step one takes on it.”
—Robert Musil (1880–1942)