What activity is involved in creating or changing a Purchase Requisition (PR)?

Creating or changing a Purchase Requisition (PR) specifically involves generating a document that signifies the intent to purchase goods or services, which ultimately leads to a commitment of funds. This initial step is crucial in the procurement process, as it earmarks financial resources for a particular purchase and initiates subsequent actions, such as vendor selection and order approval.

When a PR is created, it outlines the details of what is needed, including quantities and specifications. This document is essential for ensuring that funds are allocated appropriately and that the purchasing process is aligned with budgetary constraints. The commitment of funds indicated in the PR is a fundamental component of the entire acquisition process, as it signals to the financial system that resources are being set aside for this obligation.

The other activities mentioned, such as establishing contract terms and approving a Purchase Order, occur later in the acquisition cycle and are dependent on the prior completion of the PR. Recording financial transactions also follows the commitment established by a Purchase Requisition, marking different phases of the procurement and accounting processes.