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

In short, an order starts as a requisition but gets converted to a purchase order.

A requisition (req for short) is a document by which departments may request the purchase of goods and/or services. It is an internal-only document, not an official document, and is the first half of the purchasing process. Think “Request Requisition”.  A requisition is created by someone in a department, and it will flow through an approval process, finally ending up in a buyer’s que in the Purchasing Department. Once the buyer has reviewed the requisition to ensure it meets various criteria, they will convert the requisition (a process also known as sourcing) into a purchase order. At that point the requisition has served its purpose and can be considered complete, but the task to finish the order is then passed to the new purchase order that the buyer created from the requisition. There are additional approval steps by college administration before the purchase order is issued to officially place the order with the supplier.

 

The life cycle of a Purchase Order

Life Cycle of purchase order