What is the difference between a requisition and a purchase order?

What is the difference between a requisition and a purchase order?

• A. A requisition is a signed contract; purchase order is an internal request.
• B. Requisition requests materiel; a purchase order formalizes an obligated purchase with a supplier.
• C. Requisition commits funds; purchase order initiates payment.
• D. Requisition finalizes delivery; purchase order initiates maintenance.

Answer: (B)

The difference is that a requisition is an internal request for materiel, while a purchase order is a formal contract with a supplier. A requisition identifies what is needed, who requests it, and when, and it starts the procurement process but does not bind a supplier or create a financial obligation. A purchase order, issued after the requisition is approved, communicates the exact items, quantities, prices, and delivery terms to the supplier and creates a legal obligation for the organization to buy those goods or services. In practice, the flow is: request (requisition) → approval and budgeting → formalize with a purchase order → supplier ships → receipt and payment.

The difference is that a requisition is an internal request for materiel, while a purchase order is a formal contract with a supplier. A requisition identifies what is needed, who requests it, and when, and it starts the procurement process but does not bind a supplier or create a financial obligation. A purchase order, issued after the requisition is approved, communicates the exact items, quantities, prices, and delivery terms to the supplier and creates a legal obligation for the organization to buy those goods or services. In practice, the flow is: request (requisition) → approval and budgeting → formalize with a purchase order → supplier ships → receipt and payment.