Purchasing Forms. Among many different forms used in purchasing, the two main forms needed are the Purchase Requisition and Purchase Order. Two of them are describe shortly in below.
The Purchase Requisition (PR): The Purchase Requisition is created by a stores or warehouse in-charge who follows that the quantity on hand is required to order or by a materials ledger person (BIN card holder) who may primarily be responsible for notifying the purchasing team when to buy or with a works manager who understands the need for materials or unusual quantities, or with a research fellow or engineering department employee who requires materials or supplies of a special nature, or with a computer system that has been wisely programmed to create an automatic replenishment advice to the purchasing department.
For standard materials, the purchasing department may require little information other than the stock number and uses judgment regarding where to buy and the required quantity to order through Purchase Requisition. For other purchase requests, it may be needed to give catalog ID numbers, weights, standards, meticulous descriptions,Item names, quantities to order, and tentative prices mentioned in Purchase Requisition.
The Purchase Order:
The purchase order is signed by the purchasing in-charge or other official and is a formal authorization to a supplier to supply mentioned quantities of a goods at agreed terms,price and at a stipulated time and place. As a matter of convenience, the supplier’s order forms may be used ; but in general practice, the order forms are prepared by the buying company, and the form is adapted to the particular requirement of the buyer.
As a matter of record and for accounting control, a PO (purchase order) should be issued for every purchase of materials, supplies or equipment, whether the purchase is done by mail, telephone, telegraph or in other forms. Where a purchase commitment is made by wire or in an interview with a sales representative, the purchase order serves as confirmation to the supplier and places the required documents in the hands of those related in the purchasing organization.
The purchase order gives the supplier a complete description of the item and services required, the terms, the rates, and the ship-to-location instructions. Where applicable, the item description may refer to attached blueprints and specification pages. The original and one carbon copy, the latter being labeled “Acknowledgment Copy,” are sent to the supplier.
The supplier is asked to return the carbon copy with his signature which indicates to the purchasing agent that the order was received and will be delivered according to the specifications enumerated in the PO (purchase order). The acknowledgment copy is a necessary form for contract procedure. So, Purchase Requisition and Purchase Order are not the same thing.