Manal A
Manager, Operations & Projects Development at Kazema Global Holding Co.
Can anybody advise me the difference between material requisition and purchase requisition?
Answers (9)
Robert B. C
Agribusness Specialist. Experienced in Rural farm to table Development
A material requisition would be an internal document...the company production manager sends a mat'l requsition to his warehouse manager asking for ...lets say 1000 kg of white rice to be sent to the production line. A purchase requisition would be ...when the company purchasing agent sends an order (purchase requisition) to the supplier of white rice.It would be an external document.
I trust this will be of some help.
Robert B. Corshen
20/20 Food Pro
As I understand it, the difference between material requisition and purchase requisition is partly in where in the process it occurs as well as in the nature of the requisition act it self.
A material requisition is issued in order to have material delivered to the manufacturing line at the right time/sequence whereas a purchase requisition is issued in order to be "allowed" to actually purchase goods/materials/services etc. A purchase requisition often has to be issued if the purchase order price exceeds a certain amount of money and the purchaser does not have the authority to issue purchase orders over this amount.
I hope that this was to any help.
The most usuall specification is this:
Material requisition is the requisition of internal customer for delivering material, which has already been sourced (there is a supplier and price defined)
Purchase requisition is the requisition of internal customer for sourcing a material that has so far no supplier and price defined
But most of companies only use Purchase requisition for both activities, so Purchase requisition simply requires delivery of material to internal customer regardless whether it has already been sourced or not and it's up to procurement/purchasing dept. to get it.
Subhas C B
Management Consultant
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You get a material on submitting a material requisition. You get material, if it is available in stores. If it is not available, a purchase requisition is generated or triggered based on the material requisition, purchase policy and stock level guidelines.
Your authorize purchase department to do required purchase by submitting a purchase requisition.
For material requirements, normally, users raise materials requisition; stores or ERP system subsequently raises purchase requisition.
For new items or components or services, normally purchase requisitions are raised by the user.
Both requires authorization, quantity, delivery schedule, item codes (for system generated requisitions) and specifications.
BRUNO V
TO BE ADVISED at TO BE ADVISED
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all answers so far are a good explanation.
but what is maybe more important, if you are the manager of that operation, see to it that material managers and procurement are on the same line ! material managers' main objective is to keep the production line going, purchasers shall find the 'lowest' supplier in the market.
A US customer of mine had a huge problem : the cheapest parts were found in Malta. From a logistics perspective that is a disaster (an island, with limited exports/transport possibilities, at the time not part of the EC) so the line was stopped regularly for parts delayed, and the cost to fly in replacement orders was huge. From a financial perspective, although the supplier was producing cheap, the cost to get them to the plant in the US was enormous. so instead of putting the net piece price as a benchmark, strongly insist on having the "landed cost" as the real comparison.
brgds, bruno
Dr. Sunny D
Hands on C-level Executive and Entrepreneur,
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MRO Material Requisition Order
An order for type and quantities of material to be placed into production
or used in performing a service; it causes materials
and its cost to be released from the Raw material Inventory
warehouse and sent to Work in Process Inventory
Material Requisition or MRO and Purchase requisition are similar terms.
Links:
Navneet G
Managing Partner at Inspirage, LLC
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As indicated by several respondents, a material requisition is internal to a company like a plant/warehouse requesting material from WMS system or between different plants/ warehouses or from a distribution center to manufacturing facility. This will be satisfied either via a material issue in your inventory system or will be converted to an Internal Sales Order between multiple facilities.
A purchase requisition is usually external to a vendor/ supplier which upon approval will be converted to a Purchase Order.
The financial as well as material transactions involved with each of these scenario may be quite different and hence you need to indentify the document accordingly.
Jon W. H
Writer and Speaker at Procurement Insights
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While some may splice hairs by saying that one process or function is internal facing (purchase requisition) and the other is external facing (material requisition), and others may suggest that they are interchangeable - similar to the "differences" between purchasing and procurement, in the end it matters not if the real-world processes that define your business model are not properly defined and understood.
With 85% of all e-procurement/supply chain initiatives failing to achieve the expected results, a debate surrounding terminology would seem to be an exercise in shadow boxing.
I am not suggesting that the varied efinitions are incorrect or even in and of themselves unnecessary. However given that most enterprises attribute the requisition process as being an integral part of an organization's internal financial controls, perhaps a more pertinent question would be how to overcome or bridge the communication gap between finance and purchasing.
In the context of the results of a 2007 Aberdeen survey, the disconnect between the financial imperatives of the CFO, and the operational requirements of the CPO means that supply chain issues go much, much deeper than the discernment of industry terminology. (Note: I have provided a number of links under the Web Resources section to corresponding articles discussing the surevey's results.)
Here are just a few of the findings from that survey:
73% of all savings claimed by purchasing departments are discounted by the finance department as being invalid.
Less than 20% of CFOs consider the work of CPOs and their staffs as having a very positive impact on competitiveness.
On average only 46% of CFOs feel that the procurement team has contributed to enterprise growth.
Once again, and given the fact that the requisition process is seen largely as a means of establishing control mechanisms as defined by the finance department, doesn't it make more sense to focus on a collective process understanding and refinement through effective stakeholder collaboration?!
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Richard L
Replenishment Planner and Team Lead for Purchasing and Logistics at Big Lots
That will depend on the system you are using and the type of business this is in relation to.
A Purchase Requisition (PR) can be an internal document from one business area to a central purchasing group letting them know there is a need and to place a Purchase Order (PO)
Typically I have found that a Material Requisition (MR) is for a plant to request materials to be moved to the line to be used.
Hope this helps
