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A purchase request is a request from a department to the procurement area for purchasing a specific item or service. For goods, it must contain a full detailed description, the unit of measurement and quantity. It may also contain suggested manufacturers, technical drawings, pictures or reference prices. For services, it must contain the detailed scope of work and the conditions under which the service must be performed, the necessary equipment/material involved and the clear outline of the responsibilities of the company and the contractor. Occasionally, it may contain the initial budget.
A purchase order is the formal document issued by the procurement department and sent to a vendor to ratify a purchase once all conditions and details have been negotiated and agreed upon. It has the same legal status as a contract. It must contain all the essential data from the purchase request already mentioned above plus the issue date, delivery terms, payment terms, payment information, supplier and company’s details and contacts.
In Logistics term the word "Request" is used as RFQ i-e Request For Qoutation which means that a vender is asked to provide price and availability to the procuring agency. On the basis of RFQ the buyer submitts firm Purcsase Order (PO) to supplier for providing the stores in accordance with the RFQ
A purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions.
Purchase request/requisitions are internal documents you use to request your Purchasing department to procure a particular quantity of a material or a service for a particular date.
Purchase Request
A requisition order is a form that a department must submit to whichever department controls the financial activities of the business. Although individual forms vary by business, requisition orders generally require certain information, including the department requesting materials, the exact number of supplies requested, a general description of those supplies, the legal name of the supplier and the expected price of the purchase. A requisition order is either approved or denied by the financial department of the business
Purchase Order
Once the financial office of a business has approved the requisition order submitted by a department, it issues a purchase order to the supplier of the requested goods. Purchase orders should include certain information, such as the name of the purchasing office, supplies being purchased, ship-to address, payment terms, invoicing instructions and purchase order number. To assist in record keeping, purchase orders will have the same number as the requisition order that generated them.
i agree100 % with Mr. Divyesh Patel , but i can samll clarifications both ( PR & PO ) must be signed from the authorized person for approval , Second Must attache with other Quotes from other supplier with same market status to know why our Purchase sections choose that supplier and not the others as way of Finance Audit , to let Purchase be sure that finance is not just Job of payment but of Audit as well.
From the term "Request", it is not Final which means it needs to be reviewed for approval by those approving officers. Once the request is being approved, it will then be forwarded by the approving offices for Purchase Order. An order is a final document for implementation to realize the Purchase Request..
Purchase request::- purchase request made by your procurement department as they require and mention all details like ..itmes , quantity, unit, mesurement , cad drawings & pictues etc..
Purchase Order:- purchase order prepair as our purchase request. Purchase order is a document there are mention all details as items, quantity . unit, price, delivery term , payment term and condition and issued by vendor name after aproval Authorised manager (GM, Purchasinge manger, Prucerement mangers).
Purchase Order: When a buyer generates first official document to seller, indicating types, quantities, shipping address, billing address, and agreed prices for products and services. When the purchase order has been accepted by a seller then it forms a contract between the buyer and seller.
Purchase request/Requisition: Tt is precise document generated by an external or internal parties to notify the purchase items it needs to order, their quanties and the future date. It may also have the authorization. The purchase requisition process help manage requests for purchases of items goods or services later routed for apporval within the organization.
Hi. Purchase requests (Purchase requisitions PR) are generated by various functions of an organization and forwarded to the Procurement/ Purchasing function to arrange for the purchase of materials/ services.
They may include the following information: material codes, material / service description, Unit, Quantity, estimated value, date by which materials are to be delivered, Justification for purchase, Last purchase price, Vurrent stock at stores, pipeline stock if any, whether any third party inspection must be carried out, whether quotations are to be forwarded to the requisitioner who raised the PR for technical recommendations and so on. There can be various types of PR formats - like Nonstock items PR, Stock items PR (raised by stores for replenishment of MIN-MAX items), Emergency PR, Cash purchase PR, Service PR and so on. Depending on the value, type of materials/ services, sourcing procedure to be adopted, the PRs will have to be approved by the competent authority as per the delegation of authority in the organization.
Purchase order (PO) is a contract for purchasing materials./ services issued to a vendor. It indicates address and other details of the vendor and buyer, reqference to the quotation submitted by the vendor, material code, material/ service description, unit, quantities, rates, Total value, Taxes applicable, Delivery date or schedule, payment terms, Incoterms or other commercial terms, terms and conditions applicable to the PO (normally given on the reverse of the PO), Details of the purchasing authority with signature and so on. The Quotation submitted by a vendor is an promise/ offer and PO is the acceptance of the promise/offer. So there is a legally enforceable contract between vendor and buyer once the PO is placed.
Request is not final while an order is final for purchase
Purchase Request / Requisition is the one that is made internally in the organisation listing the items required to be purchased for the purpose of either obtaining tender(intimation to purchase department) or for getting the budget cleared for the items from the management (authorisation) to proceed with the purchase.
Purchase order is the order that is placed with the seller on the required items and the quantity by the buyer. (More like a contract entered between for2 people for a transaction)
