Purchase Requisitions Vs Purchase Orders | Optiwise
Understand the difference between purchase requisitions and purchase orders, who creates them, when they are used, and why manufacturers need both.
Purchase Requisition vs Purchase Order: What Is the Difference?
Purchase requisitions and purchase orders are often mentioned together, but they are not the same.
The easiest way to understand the difference is this:
A purchase requisition is an internal request to buy. A purchase order is an external order sent to the supplier.
That distinction matters because businesses need control before they commit money. If employees can directly create supplier orders without approval, purchase costs can rise quickly. If purchase teams issue POs without understanding internal need, they may buy the wrong item or wrong quantity. The requisition and purchase order together create a controlled buying flow.
For manufacturers, this flow is critical because purchases directly affect production, inventory, quality, delivery, and cash flow.
This guide explains purchase requisitions vs purchase orders, how they work together, key differences, examples, and how AICAN Optiwise helps manage both documents in one connected workflow.
Note: This article is for general business understanding only. Purchase, tax, accounting, legal, and compliance treatment may vary by business and jurisdiction. Please consult qualified professionals for specific decisions.
What Is a Purchase Requisition?
A purchase requisition is an internal request raised by a department or employee to ask for approval to purchase goods or services.
It is used before the purchase order.
For example, production may raise a requisition for raw material needed for next week’s plan. Maintenance may raise a requisition for spare parts. Stores may raise a requisition because stock has fallen below reorder level.
The requisition helps the business review need, quantity, stock, budget, and urgency.
What Is a Purchase Order?
A purchase order is a formal document issued by the buyer to the supplier after approval.
It confirms what the buyer wants to purchase, including item, quantity, price, delivery date, payment terms, and other conditions.
The supplier uses the PO to process the order and deliver goods or services.
Main Difference Between Purchase Requisition and Purchase Order
The main difference is audience and purpose.
A purchase requisition is internal. It asks for permission to buy.
A purchase order is external. It tells the supplier what to supply.
Comparison Table
How They Work Together
A clean purchase process usually follows this flow:
- Department identifies need.
- Purchase requisition is raised.
- Stock and budget are checked.
- Manager approves requisition.
- Purchase team selects supplier.
- Purchase order is issued.
- Supplier delivers material.
- Goods are received.
- Invoice is matched with PO and receipt.
This flow ensures that buying is controlled before supplier commitment.
Example in Manufacturing
A production supervisor needs 1,000 units of a component for a confirmed order.
The supervisor raises a purchase requisition with item code, quantity, required date, and production order reference. Stores checks available stock and finds only 300 units. The manager approves purchase for 700 units. Purchase selects supplier and issues a PO. Supplier delivers material. Stores receives it against the PO.
In this example:
- purchase requisition captures internal need
- purchase order confirms supplier commitment
- goods receipt confirms material arrival
Each step has a different job.
Why Manufacturers Need Both
Better Approval Control
The requisition ensures that purchases are reviewed before supplier orders are issued.
Clearer Material Planning
Production, stores, and purchase can see why material is needed and by when.
Fewer Wrong Purchases
Specifications and purpose are captured before buying.
Better Supplier Communication
The PO gives the supplier clear commercial terms.
Stronger Audit Trail
The business can trace a purchase from internal need to supplier order and payment.
Common Mistakes
Skipping Requisitions
If users directly ask purchase to order without PR, approvals and need validation become weak.
Treating PR as PO
A requisition is not sent to the supplier. It does not replace a PO.
Creating PO Without Stock Check
The business may buy items already available or already ordered.
Missing Specifications in PR
If the requisition is vague, the purchase order may also become vague.
Not Linking PR and PO
Without linkage, it becomes hard to trace why a purchase was made.
How ERP Helps Manage PR and PO
ERP connects requisitions and purchase orders in one workflow.
A connected system helps:
- raise PR from production or stock needs
- check available inventory
- route approvals
- convert approved PR into PO
- maintain document history
- track pending PRs and POs
- link goods receipt and invoice
- improve purchase reporting
Optiwise by AICAN helps manufacturers reduce manual gaps between internal demand and supplier orders by connecting purchase requisitions, purchase orders, inventory, stores, and reporting.
Founder’s Note
At AICAN, we like simple controls that actually work. Purchase requisitions and purchase orders are a good example. One captures the need. The other confirms the supplier commitment.
AICAN Optiwise helps manufacturers keep both connected, so purchase decisions are not floating separately from production demand, stock reality, and approval discipline.
FAQs
What is the difference between purchase requisition and purchase order?
A purchase requisition is an internal request for approval to buy. A purchase order is an external document sent to the supplier after approval.
Which comes first, PR or PO?
The purchase requisition usually comes first. After approval, the purchase order is created.
Can a purchase requisition be sent to a supplier?
No. A purchase requisition is internal. The purchase order is sent to the supplier.
Why do manufacturers need purchase requisitions?
They help control internal demand, check stock, approve purchases, and link buying to production requirements.
How does Optiwise help with PR and PO workflows?
Optiwise by AICAN connects requisitions, approvals, purchase orders, inventory, goods receipt, and reporting.
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