What is the result of creating a Purchase Requisition?

Creating a Purchase Requisition results in an administrative reservation of funds. This process is essentially a formal internal document submitted by a department to request the purchase of goods or services. The primary purpose of the Purchase Requisition is to secure the necessary budget and ensure that funds are allocated before proceeding with further procurement actions.

This reservation serves to alert the financial systems and relevant personnel that there is a need for funds that will be utilized for a specific procurement purpose. It does not, at this stage, create any legal obligations or binding contracts with vendors; it is more of an internal administrative step to manage budgeting and financial accountability.

The Purchase Requisition is an important initial step in the procurement process but does not signify that procurement has been approved or that contracts have been entered into. It merely initiates the process of ensuring that funds are available for future contractual obligations.