Purchase Requisition Process

Explained

Whether you are starting up your own small business or you serve as the
department head for purchasing in a long-established company, purchase
requisition automation makes sense.

You have a variety of options for purchase requisition solutions. They are more
accessible and affordable than ever before so now is the perfect time to update
your purchasing system. Faster processing times, better control, and cost savings
are just a few of the benefits you can take advantage of with an automated
purchase requisition platform.

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How The Purchase Request and
Requisition Process Works
A purchase requisition process refers to the flow of events that are triggered
when your department needs to make a purchase. From the discovery of a
business need such as office supplies to the creation of the purchase request all
the way through to the delivery of products, there are a number of tasks that
must be completed before the purchasing team can fulfill the request.

Using a system for purchase requisition makes it easy for your business to
generate purchase requisition documents from nearly any location as long as
there is an internet connection.

Steps in a Purchasing Process

After someone in the company has determined and need, they begin the purchase
requisition workflow by creating the requisition. Usually, this involves filling out
an internal document called a requisition form.

That purchase requisition form will go through the internal approval process
which usually involves approval from the Department head or supervisor. From
there, the requisition is routed to the purchasing department.

The procurement department will review the request. They may approve or reject
the case after the review. In the event that it is rejected for lack of information, it
is sent back to the requesting department for the necessary changes and then
routed back to the necessary approvers.

After the purchase requisition is approved by everyone as dictated by the

approval workflow, the official purchase order is created. It includes the specifics
such as quantities types and prices that have been previously agreed upon with

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the chosen vendor.

The purchase order is then sent to the supplier and once it is accepted, the
purchase order becomes a legally binding contract.

The supplier delivers the products or services on the specified date. The
warehouse or receiving team checks the order for quality and processes any
returns that may be required.

A three-way matching process checks the invoice, purchase order, and purchase
request to confirm that it is accurate. This ensures that the accounting
department is only paying for items that they have both ordered and received.

The purchase order is closed once all of the documentation requirements are met.
At this point, the invoice from the supplier is entered into the accounts payable
and will be paid in accordance with the terms and conditions agreed upon
between you as the buyer and them as the seller.

Of course, this is the purchase requisition process in broad strokes. In reality,

there are a variety of details that could go wrong at any stage of the process of
creating and efficiencies and losses. This is especially true if you are still relying
on a manual paper-based solution as things can get lost and delayed as they move
from desk to desk in the approval workflow.

Automating your purchasing process is one of the best things you can do for
your organization. It reduces errors, improves productivity, and frees the
procurement team to focus efforts on other value-added activities.

The Answer Lies in E-Procurement

An e-procurement solution helps streamline your purchase requisition process.
Investing in an e-commerce solution that’s tailored to your organization’s needs

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provides you with a number of benefits such as:

Elimination of paperwork
Cost savings
Shorter purchase-to-pay cycle
Improved employee productivity
Better spend visibility
Improved vendor performance management
Error reduction
Transparency of operation

E-Procurement Core Functionality

Hearing that a procurement system can help improve your business process
doesn’t seem all that impressive unless you understand how it works.

E-procurement systems have modules that help manage the various procurement
functions throughout the organization. These modules, in turn, build multiple
workflows to automate and streamline the process throughout your company.

An e-procurement solution will handle:

Purchase Requisition Processing

Today’s e-procurement software makes it easy to create purchase requisitions and
Route them through the necessary approval workflows automatically. This
minimizes delays and bottlenecks in the system. After the requisitions are
approved, the software automatically converts them to purchase orders.

Purchase Order Management

Your organization will be able to organize purchase orders the best way you see

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fit using their e-procurement software. You can track multiple purchase orders
and manage them all in a central location. You can also use a customized budget,
user permissions, workflows, and policies so that everything matches white your
employees are already used to doing. Or, if you find changes are necessary to
remove and efficiencies from your current manual process, the software makes it
easy for your team to learn the new way to do things.

Vendor Management
Managing your vendors can be quite difficult without a centralized platform to
help you. E-procurement offers that centralized database to capture all of your
vendor information. This allows your procurement team to better manage
performance, negotiate better deals with suppliers and ultimately ensure quality.

Invoice Management
Invoicing mistakes can be costly and have a major impact on supplier
relationships, cash flow, and your bottom line. Using procurement software helps
match invoices and order receipts accurately and Route them through the
necessary approval processes to your financial software as quickly as possible to
maximize your invoice processes efficiency.

Contract Management
To maximize your procurement process, you must also have a contract
management system in place. With an e-procurement system, you can centralize
your contract management by attaching documents to each vendor. You can also
control who has access to the information with user-specific permissions, and see
who takes what actions and when with the audit trail.

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Why Choose Planergy for Your Purchase
Requisition Process
If you’re looking for an effective way for your company to manage its purchase
requisition processes, Planergy has everything you need. With a user-friendly
design, you can customize the interface to easily meet your company’s
requirements.

Planergy allows you to automate your workflows effortlessly to boost productivity

and efficiency. The web-based application allows you to access Planergy from
anywhere on an Internet available device as long as there is an internet
connection without a platform-specific app. This allows you to approve purchase
requisitions and purchase orders on the go to avoid delays.

Reporting tools make it easy for you to get actionable and in-depth insights into
your process performance so you can make improvements when and where
necessary. Data remains secure in the cloud and with user permissions provides
conditional access so that only those who need to see the data are able to.

What’s your goal today?

1. Use Planergy to manage purchasing and accounts
payable
We’ve helped save billions of dollars for our clients through better spend
management, process automation in purchasing and finance, and reducing
financial risks. To discover how we can help grow your business:

Read our case studies, client success stories, and testimonials.

Visit our “Solutions” page to see the areas of your business we can help

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 improve to see if we’re a good fit for each other.
Learn about us, and our long history of helping companies just like yours.

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