Oracle Purchase Requisition

An Oracle Purchase Requisition is a formal document generated within Oracle's Enterprise Resource Planning (ERP) system, which is used to request the purchase of goods or services. This document serves as an internal authorization tool that notifies the purchasing department or procurement team of the need to procure specific items or services. It helps in streamlining procurement processes, ensuring that purchases are necessary and approved before any financial commitments are made.

One of the key features of Oracle Purchase Requisition is its integration with other Oracle modules such as Oracle Inventory, Oracle Purchasing, and Oracle Financials. This integration ensures that data consistency is maintained across different departments and functions, eliminating redundant data entry and minimizing errors.

The process typically begins with the identification of a need for goods or services within a department. The employee or department head will log into the Oracle ERP system and create a Purchase Requisition. This involves specifying details such as the type of goods or services needed, quantities, preferred vendors, estimated costs, and the required delivery date.

Once the requisition is created, it goes through an approval workflow. Oracle's robust workflow engine allows organizations to define flexible approval hierarchies and business rules based on cost centers, amounts, and authorization limits. This ensures that all necessary approvals are obtained before the requisition is converted into a Purchase Order (PO).

After the requisition has been approved, it is automatically communicated to the purchasing department. The procurement team then converts the approved requisition into a Purchase Order, which is sent to the chosen vendor. This seamless transition from requisition to order helps in reducing the procurement cycle time and enhances operational efficiency.

Moreover, Oracle Purchase Requisition supports various features such as budgeting and encumbrance accounting, catalog management, and supplier management. These features help organizations maintain budgetary control, ensure compliance with procurement policies, and manage supplier relationships effectively.

In summary, Oracle Purchase Requisition is a crucial component of the Oracle ERP system that helps organizations manage their procurement processes efficiently and effectively. Its integration with other Oracle modules and its ability to automate workflows and approvals make it an indispensable tool for modern enterprises.