Requisition

What is a Requisition?

A requisition is a formal document or an electronic form used by organizations to request that a specific task be executed or a specific product or service be obtained. It typically includes detailed information about the requested item or service, the required quantity, the date by which it is needed, and the department or person requesting it.

Types of Requisitions

1. Purchase Requisition: An internal document used to request the procurement of goods or services.
2. Materials Requisition: An internal document used in manufacturing to request raw materials necessary for production.
3. Manufacturing Requisition: Used to initiate or authorize the production of goods within an organization.

Examples of Requisitions

• Example 1: A Purchase Requisition for new office supplies.

  • Requested By: Marketing Department
  • Items Requested: Notebooks, pens, and printer ink
  • Quantity: 50 notebooks, 100 pens, 10 ink cartridges
  • Needed By: Next Monday
  • Approved By: Department Head

• Example 2: A Materials Requisition for a production line.

  • Requested By: Production Supervisor
  • Items Requested: Aluminum sheets, welding rods
  • Quantity: 500 sheets, 200 rods
  • Needed By: End of the month
  • Approved By: Operations Manager

• Example 3: A Manufacturing Requisition for producing a batch of widgets.

  • Requested By: Product Line Manager
  • Item to be Produced: ABC Widgets
  • Quantity: 1000 units
  • Start Date: Immediate
  • Completion Date: Next week
  • Approved By: Plant Manager

Frequently Asked Questions

Q: Who is responsible for approving a requisition? A: Typically, a requisition must be approved by a managerial-level employee or a department head before the request can be fulfilled.

Q: Can a requisition be modified after approval? A: Modifications to a requisition after approval usually require re-approval from the same or higher authority to ensure compliance and oversight.

Q: What information is commonly included in a requisition form? A: A requisition form typically includes the requesting department, date, items or services requested, quantities, required by date, purpose, and approval signatures.

Q: How does a Purchase Requisition differ from a Purchase Order? A: A Purchase Requisition is an internal document requesting the purchase, whereas a Purchase Order is an external document issued to a supplier to procure the requested items or services.

Related Terms

• Purchase Order (PO): A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
• Production Order: A document used in manufacturing that specifies the start of production for a certain period or quantity.
• Bill of Materials (BOM): A comprehensive list of raw materials, components, and assemblies required to build or manufacture a product.

Online References

• Investopedia: Requisition
• Finance & Administrative Services: Requisition Process
• The Balance: Requisition Forms

Suggested Books for Further Studies

1. “Accounting for Managers: Interpreting Accounting Information for Decision-Making” by Paul M. Collier
2. “Cost Accounting: A Managerial Emphasis” by Charles T. Horngren, Srikant M. Datar, and Madhav V. Rajan
3. “Financial and Managerial Accounting” by Jan R. Williams, Susan F. Haka, Mark S. Bettner, and Joseph V. Carcello
4. “Management Control Systems” by Robert N. Anthony and Vijay Govindarajan

Accounting Basics: “Requisition” Fundamentals Quiz

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