Purchase Request Form
Going to the grocery store and purchasing a few household items is the simplest example of a purchasing. If the quantity of items to be purchased gets larger you might even think of listing them down as to avoid any important item being missed out. Similar is the case with organizations but it is not as simple as it seems. It requires certain procedures to be followed systematically to ensure that items being purchased are of the best quality and price.
How Does It Work?
Think for yourself as being the head of an organization. To run the company, you need not only the workers but also the equipment to complete a certain task or goal. You as a boss will certainly not go to the market and get the required items though it is your responsibility to provide the workers with the materials needed. The answer to this is the purchase request form.
What is a Purchase Request Form?
The purchase request form also known as the Purchase Requisition Form is a document given by the employees of a company to its purchase department for the acquisition of goods or services needed for production.
A purchase request form is used by a company to enlist the demand for all the products/equipment needed and send to the company who will supply it later.
The form will include the list of items to be purchased, their quantity and the cost associated with them. Once the purchase department gets the form it is then forwarded to the authoritative person who will certify the need for purchase. Once approved by the person in authority, the request is then forwarded to the commercial department. The commercial department after getting the request searches for vendors who would provide them with the best quality material and best available price.
Mostly 2-3 vendors are looked upon for the purchase, The Company then selects the one who best suits their requirement and orders for the purchase. For this, a Purchase Order Form is generated.
There is a very low risk of fraud associated with this procedure of purchase as the managers cannot directly make requests to vendors for materials needed but a proper department is involved in the purchase, Furthermore, the approval of an authoritative body also backs the purchase being made.