Purchase orders and [purchase requisitions](/content/blog/orders-vs-requisitions/index.html), supported by efficient [purchasing software](/content/blog/purchasing-software-guide/index.html), are pivotal documents within a streamlined [procurement](/content/blog/what-is-procurement/index.html) process. Both documents enable a purchasing department to effectively strategize purchases and allocate budgets, while also furnishing evidence of expenditures in the event of financial audits.

## What Is a Purchase Requisition?

A [purchase requisition](/content/blog/what-is-purchase-requisition/index.html) is a document or form that an employee within your company fills out and submits to an approver to purchase goods or services. When a purchase requisition is complete, this starts the purchasing process. However, it doesn’t guarantee the purchase will go through.

A purchase requisition includes the following information:

- The date requisition is created
- The purchase requisition number
- The name of the employee making requisition
- The description of items needed
- The number of items in the price
- Suggested vendor information

## What Is a Purchase Order?

A purchase order is a document that outlines the details of an actual purchase. After the purchase acquisition has been approved, the [purchasing department](/content/purchasing-terms/what-is-purchasing-department/index.html) creates a purchase order. Purchase orders tend to contain more information than purchase requisition numbers because they’re actionable documents. This includes:

- The [purchase order number](/content/blog/purchase-order-po-number/index.html)
- The name of the employee or department making the request
- The description of the product and the quantity required
- The name of the vendor
- The purchase price
- Payment terms
- The shipping address

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## The Key Difference Between Purchase Orders and Purchase Requisitions

The main difference between purchase orders and purchase requisitions is that a purchase requisition involves getting internal permission to buy goods or services.

On the other hand, a purchase order is used to actually purchase the goods or services. So, in a nutshell, purchase orders are about permission, while purchase orders are about purchasing.

## The Importance of Purchase Orders and Purchase Requisitions

Purchase orders and purchase requisitions can give you more control over employee spending. As a result, your employees will have a greater chance of receiving discounts on goods or services because there’s greater visibility into purchasing.

Want to learn more? Visit our [Purchase Order](/content/blog/purchasing-software-hardware-purchase-orders/index.html) guide.