What is a Purchase Requisition (PR)?

A Purchase Requisition (PR) serves as an internal document used within an organization to formally express a need for goods or services. When employees or departments identify a requirement, they create a PR to communicate this need to the procurement department or purchasing team. This document typically includes details such as the type of item required, quantity, and sometimes a justification for the purchase.

The PR is crucial as it initiates the procurement process, ensuring that the purchasing team is aware of the needs of the organization and can take the necessary steps to fulfill them. It acts as a clear request that helps in budgeting, inventory management, and maintaining proper procurement controls.

The other options do not accurately describe a PR. A form to request payment pertains to accounts payable processes rather than procurement needs. A contract with suppliers outlines terms and conditions for future transactions, which is separate from the initial request for goods or services. Lastly, a delivery confirmation document is used to acknowledge receipt of items, which again falls outside the function of a Purchase Requisition.