Which document initiates the procurement after a need is identified?

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

Answer: (A)

Initiating procurement is driven by an internal purchase requisition. When a department identifies a need, they document it in a purchase requisition, detailing what’s needed, quantities, desired delivery date, and any accounting codes. This formal request prompts the purchasing function to source suppliers and obtain approvals before any supplier is contacted. The requisition itself doesn’t place an order or request payment; it simply authorizes and informs procurement to begin the process. Once approved, the purchasing team uses the requisition to create a purchase order, which is the actual contract sent to the supplier to procure the goods or services. The other documents serve later steps: the purchase order communicates the order to the supplier, the receiving report records what arrives, and the invoice requests payment after delivery.