In centralized purchasing, what document informs purchasing staff that more products are needed?

• A. Purchase order
• B. Purchase requisition
• C. Invoice
• D. Receiving report

Answer: (B)

A purchase requisition serves as the internal signal to restock. In centralized purchasing, when a department notices inventory is low or anticipates a need, it submits a purchase requisition to the purchasing team. This document details what is needed, including item descriptions, quantities, and desired delivery timing, and may include budget codes and approvals. It is the formal request that prompts the purchasing staff to initiate the procurement process, convert the request into a purchase order, and begin arranging supplier fulfillment.

A purchase order, issued after a requisition is approved, is the supplier-facing contract to buy the goods. An invoice comes from the supplier after delivery and requests payment. A receiving report records what actually arrives and is used to verify against the order and invoice.