What is Purchase Requisition?
A purchase requisition is an internal approval document that starts the purchasing process inside a company before a purchase order or payment is issued.
What Is a Purchase Requisition?
A purchase requisition (also called a purchase request or requisition form) is an internal company document used to initiate and authorize a purchase before any money is spent. It's the first step in a company's procurement process — a way for employees or departments to request approval to buy goods or services. Think of it as the company's internal "can I buy this?" form. The person doing the buying (or the freelancer billing them) can't just spend company money — they need internal sign-off first. The purchase requisition is that gate. The typical flow looks like this: `` Employee identifies need → Submits Purchase Requisition (internal) → Manager/Finance approves → Purchase Order issued (external, binding) → Vendor delivers → Invoice submitted → Payment processed ``
Why Purchase Requisitions Exist
Companies use purchase requisitions to: 1. Control spending — prevent unauthorized purchases that weren't budgeted 2. Maintain audit trails — every expenditure has an approved paper trail 3. Prevent fraud — requiring approval reduces the risk of fake purchases 4. Manage cash flow — finance can batch approvals and manage outflows 5. Assign budget responsibility — managers know what's being spent in their department
Real Invoice Example
A freelance UX researcher is hired by a mid-size SaaS company to conduct user interviews. The project requires $4,500 in participant recruitment fees paid upfront to a recruitment agency. Week 1: Freelancer sends a statement of work for $12,000 total. The client's project manager needs to get internal approval. Week 2: The PM submits a purchase requisition to their manager for the $12,000 project budget. Week 3: Finance approves the requisition. A Purchase Order (#PO-2026-0891) is issued to the freelancer. Week 4: Work begins. Invoices are submitted against the approved PO. The freelancer's invoice won't be processed until the purchase requisition is approved. If they hadn't known about this process, they might have followed up aggressively — which would have been counterproductive since the holdup was internal, not a payment refusal.
Purchase Requisition vs. Purchase Order vs. Invoice
| Document | Who Issues It | Purpose | Binding? | |----------|--------------|---------|---------| | Purchase Requisition | Employee/Requester | Internal approval request | No | | Purchase Order | Company (to vendor) | Commits company to buy | Yes | | Invoice | Vendor (to company) | Requests payment for delivery | Yes |
How Freelancers Encounter Purchase Requisitions
As a freelancer, you won't fill out a purchase requisition — your client will. But you will feel its effects: - Your invoice may get paused — if the client says "we need to process this through our system," they're probably waiting on a requisition approval - Payment timelines extend — requisitions can add 2-4 weeks to the normal Net-30 cycle - PO numbers matter — many companies require your invoice to reference the PO number - Follow-ups need context — "just checking on invoice #..." may need to become "is the purchase requisition approved yet?"
What to Do When You're Waiting on a Purchase Requisition
1. Ask upfront — "Will this require a purchase requisition? What's the PO number?" Get this information before you start work 2. Inquire about the approval timeline — "What's the typical approval process for a requisition like this?" 3. Don't confont aggressively — the person managing your invoice probably can't speed up internal finance 4. Document everything — keep records of every conversation in case of disputes 5. Consider milestone payments — for large projects, get 50% paid at the purchase order stage, 50% on completion
The Bottom Line
Purchase requisitions are an internal control mechanism — they don't change the fact that you delivered work and deserve to be paid. But understanding the process helps you set realistic expectations with clients, follow up appropriately, and avoid the frustration of invoices that seem to be stuck in limbo. When in doubt, ask for the PO number upfront and confirm the expected payment timeline before starting work. Key Takeaways: 1. A purchase requisition is an internal approval document — not a payment commitment 2. It must be approved before a Purchase Order is issued 3. If your client's invoice is stuck, a pending purchase requisition is often the reason 4. Ask for the PO number upfront and confirm the approval timeline before starting large projects 5. Eonebill helps you track invoices and payment status in real time — start your free trial Invoice confidently — understand the process before you start. Try Eonebill Free → View Pricing → | Glossary Home → | Home →