What is Purchase Requisition?
An internal company document used to request approval to purchase goods or services before a purchase order is issued.
Definition
A purchase requisition is an internal document used within an organization to formally request approval to purchase goods or services. It is initiated by an employee or department that needs the purchase, then submitted to a manager or the procurement department for review and authorization. A purchase requisition does not create a legal obligation to a vendor — it is purely an internal approval document. Once approved, the procurement department issues a purchase order (PO) or equivalent authorization to the vendor to formally bind the purchase.
How Purchase Requisitions Work
The process begins when an employee identifies a need — such as hiring a freelance designer for a marketing campaign. The employee completes a purchase requisition form that describes what is needed, why it is needed, the proposed vendor, the estimated cost, and the budget code to be charged. The requisition is routed to a manager for budget approval. Once approved, it moves to the procurement or finance team, which issues a formal purchase order or purchase card authorization to the vendor. Only at this stage — with a signed PO or formal engagement letter — does a binding commitment exist between the client organization and the freelancer.
Purchase Requisition Example
A marketing manager at a mid-size company needs a freelance video editor for an upcoming product launch. She submits a purchase requisition with: the description ("Video editing services for Q2 product launch video, approximately 3 minutes"), the proposed vendor (a freelancer she has worked with before), the estimated cost ($2,500), and the budget code (Marketing — Q2 Campaigns). Her director approves the budget. The finance team reviews the requisition and issues a purchase order to the freelancer. The freelancer receives the PO confirming the engagement — but the internal purchase requisition that started the process is never shown to the vendor.
Purchase Requisition vs. Purchase Order
A purchase requisition is an internal document — it exists only within the buyer's organization and is used for internal approval workflows. A purchase order is an external document issued to a vendor, creating a legal commitment to purchase. In some organizations, the purchase requisition and purchase order numbers are linked: the approved requisition triggers the generation of a PO with the same reference number. Understanding this distinction helps freelancers navigate enterprise client onboarding: if a client tells you they are "going through procurement," they are likely in the requisition-to-PO process.
How Freelancers Work with Clients Who Use Requisitions
When a client mentions their procurement or requisition process, understand that you cannot begin work until an official purchase order or signed contract is issued — no matter how certain the engagement feels. Ask the client about their timeline for internal approval and build that into your project schedule. Follow up directly with the client (not just the procurement department) to track the status of your requisition. Once you receive a PO or signed work order, verify that the scope, timeline, and compensation match what you agreed on before starting work. Eonebill's client management features help you track the gap between proposal acceptance and formal PO receipt.