Purchase Requisition vs Purchase Order: Difference and Workflow
See the difference between a purchase requisition and purchase order with a manufacturing shortage example and approval workflow.
A purchase requisition and purchase order should not be mixed. The requisition says a department needs something. The purchase order says your company has chosen a supplier and committed to buy under approved terms.
Direct answer
A purchase requisition is an internal request to buy. A purchase order is the external supplier commitment after review and approval. For a manufacturer, the useful version is the one that names the record, owner, status and exception. That is how the team acts without turning every shortage or supplier issue into a WhatsApp chase.
Worked manufacturing example
Stores identifies that M8 bolts will fall short for a production order. The supervisor requests material, purchase compares suppliers, and the buyer releases a PO.
| Step | Document | Owner | Decision |
|---|---|---|---|
| Shortage found | Material request / requisition | Stores or production | Need is recorded |
| Need approved | Approved requisition | Department head/planner | Buy is allowed |
| Supplier checked | RFQ/quote comparison | Buyer | Vendor, price and date selected |
| Commitment made | Purchase order | Authorized buyer | Supplier receives order |
| Goods received | GRN/QC | Stores and quality | Stock becomes available after acceptance |
How Optiwise handles this workflow
- Let production request material without letting everyone issue supplier commitments.
- Convert approved requisitions into RFQs or POs with traceability.
- Require fresh approval if quantity, supplier or price changes beyond limits.
- Keep rejected or duplicate requisitions visible for audit.
Optiwise connects inventory, purchasing, production, quality checks, role approvals and AI-assisted actions around the same operating records. The result is not a loose dashboard; it is a workflow your buyer, planner, storekeeper and supervisor can check.
Implementation checklist
- Define the exact trigger that creates or updates the record.
- Name the owner who approves the next action.
- Separate planned, received, accepted, rejected and closed quantities.
- Keep missing data visible instead of converting it into a false score.
- Review one real order or item before rolling the rule across every product.
Related Optiwise pages and source checks
FAQs
What is a purchase requisition?
It is an internal request asking purchasing to buy a needed item or service.
What is a purchase order?
It is a formal order sent to a supplier after approval.
Can Optiwise convert requisitions into POs?
Optiwise supports purchase indents, RFQs, quote comparison, approvals and quote-to-PO conversion.
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