ProcurePulse

Purchase Requisition (PR)

The internal document that kicks off the procurement cycle — raised by the requesting department, approved through the DOA chain, and converted into a Purchase Order once authorized. The PR is the budget and authorization checkpoint before any money is committed.

What is a purchase requisition?

A purchase requisition (PR) is the formal internal request to buy something. Any time a department needs goods or services — raw materials, IT equipment, office supplies, consulting, AMC renewals — they raise a PR describing what they need, why they need it, when they need it, and which budget it should draw from.

The PR does not commit the company to any spend. It is an internal document only. Its purpose is to get the right people to say "yes, this is needed and we have budget" before procurement engages with any vendor. Only after the PR is approved does the procurement team convert it into a Purchase Order and send it to a supplier.

Key fields in a purchase requisition

  • Item description and specifications — what exactly is being requested, with enough detail for procurement to source it correctly
  • Quantity and unit of measure
  • Required delivery date
  • Estimated cost — the requestor's budget estimate; procurement will validate this against quotes
  • Cost center / department code — which budget line will bear the expense
  • CapEx or OpEx classification — determines accounting treatment and approval thresholds
  • Preferred vendor (optional) — the requesting department may suggest a vendor, but procurement retains the right to run an RFQ
  • Justification — business case for the purchase, especially for high-value or non-standard items

The PR approval workflow in Indian enterprises

Indian enterprises typically use amount-based, multi-level approval chains governed by the Delegation of Authority matrix:

  • Below ₹50,000 — department head approval sufficient
  • ₹50,000–₹5,00,000 — department head + Finance Controller
  • Above ₹5,00,000 — CFO or MD sign-off required
  • CapEx items regardless of amount — often require a separate capital budget approval in addition to the standard DOA chain

ProcurePulse configures these chains per company, per department, and per item category. Approvers receive in-app and email notifications with full PR detail, and can approve or return for revision with comments. Every action is timestamped for audit.

PR to PO: the conversion step

Once approved, the PR becomes the source document for a Purchase Order. In ProcurePulse, the procurement team can:

  • Convert a single PR to a single PO (direct sourcing from an approved vendor)
  • Consolidate multiple PRs for the same item category into one PO (volume consolidation)
  • Split one PR across multiple vendors (partial sourcing)
  • Route the PR to an RFQ first if the value warrants competitive bidding

Every PO traces back to its originating PR, maintaining an unbroken audit trail from request through payment.

FAQs

What is a purchase requisition? +
A purchase requisition (PR) is an internal document raised by a department or employee to request the procurement of goods or services. It is the first step in the procure-to-pay cycle — it initiates the buying process and routes through the approval chain before a Purchase Order is ever sent to a vendor.
What is the difference between a PR and a PO? +
A PR is an internal request — it stays inside the organization and goes through approval. A PO is an external commitment — it is sent to the supplier and creates a legal obligation to pay on delivery. PRs trigger POs; you cannot skip the PR without bypassing internal controls.
Who approves purchase requisitions in Indian enterprises? +
Approval authority depends on the company's Delegation of Authority (DOA) matrix. Typically: department head for routine items below a threshold; Finance for capex items; CFO or MD for high-value or strategic purchases. Multi-level, amount-based approval chains are standard.
Can a PR be raised for capital expenditure? +
Yes. CapEx PRs follow the same workflow but typically carry additional fields: asset category, useful life, depreciation method, and cost center mapping. These fields flow through to asset registration in ProcurePulse once the goods are received, so capitalization is automatic.
What happens if someone makes a purchase without a PR? +
A purchase without a PR is a "maverick buy" — it bypasses approvals, budget checks, and vendor vetting. This is one of the most common procurement control failures in Indian enterprises. ProcurePulse's budget module blocks PO creation unless a matching approved PR exists.

Related terms

Request for Quotation (RFQ) → Read definition Three-Way Matching → Read definition Delegation of Authority Matrix → Read definition CapEx vs OpEx Procurement → Read definition

Last updated: 2026-04-29

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