Purchase Requisitions

A requisition is a request for the purchase department. With this the purchase department shall order required goods and services for employees in specific amounts.

Generally it will be distinguished five types:

• Personal need
• Investment
• Order demand
• Warehouse demand
• Project demand

After determining the demand of goods and services the department will create a requisition and communicate this to the purchase department. Generally each employee can issue a requisition. The requisition starts the purchase process but is not a purchase order itself.

Depending on the structure of the company organisation an approval for the requisition can be required. In that case a purchase order can only be created by the purchase department after the release of the requisition.

Common information in a requisition:

• Orderer, department if necessary
• Cost center
• Item number (item description/name)
• Desired quantity and price
• If applicable: vendor and project number

Activities

1. Approval required?
   • Activity type: Decision
2. Approve purchase requisition
   • Activity type: Activity
   • Assigned KPI: Process Time
   • Compliance Status: Insufficient
3. Correction required?
   • Activity type: Decision
4. Create purchase requisition
   • Activity type: Activity
   • Assigned KPI: Process Time
   • Compliance Status: Fulfilled
5. Purchase requisition approved?
   • Activity type: Decision
6. Record purchase requisition data
   • Activity type: Activity
   • Description: Relevant Data: Item, amount, Debtor
   • Assigned KPI: Process Time
   • Compliance Status: Medium
7. Release purchase requisition
   • Activity type: Activity
   • Assigned KPI: Process Time
   • Compliance Status: Insufficient
8. Revise purchase requisition
   • Activity type: Activity
   • Assigned KPI: Process Time
   • Compliance Status: Fulfilled
9. Source of supply available?
   • Activity type: Decision
10. Verify correctness of data
    • Activity type: Activity
    • Assigned KPI: Process Time
    • Compliance Status: Fulfilled

Applications

1. ERP System
   • Type: Application
   • Compliance status: not defined
   • GDPR relevance?: Yes
   • Description: The company’s ERP system.

Input/Output

1. PR tracking
   • Type: Tool/Database
2. PR approval
   • Type: Tool/Database
3. Order Requirement
   • Type: Trigger
   • Description: Orders can be necessary according to projects, planning and other situations. Whenever an order is necessary, a purchase requisition needs to be created.
4. Purchase Requisition
   • Type: Document
   • Description: The purchase requisition created in the ERP system.

Processes

1. Material requisition
   • In Process: Purchase Requisitions
   • Process owner: N.N.
   • Process type: Subprocess
2. Purchase orders
   • In Process: Purchase Requisitions
   • Process owner: N.N.
   • Process type: Subprocess
   • Assigned KPI: Process Time
3. Service requisition
   • In Process: Purchase Requisitions
   • Process owner: N.N.
   • Process type: Subprocess

Roles

1. HP
   • Assigned Position: Procurement
   • Type: Role
   • Description: Head of Procurment
2. Purch
   • Type: Group Role
   • Description: Purchaser