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104 CHAPTER 4 The Procurement Process

Requirements are also created manually for items that are not included
in materials planning. This process occurs when an individual manages inven-
tory or when the company needs a nonstock item (e.g., supplies) or a service
(e.g., janitorial or repair). Regardless of the trigger or source, the need for
materials is documented in the form of a purchase requisition. Note that a
purchase requisition is a document that is used for internal purposes—namely,
to request needed materials. It is not a commitment to purchase the materials
or service. Rather, the commitment occurs when a purchase order is created in
the next step of the process.

Data

The data needed to create a purchase requisition are the item category, quan-
tity, desired delivery date, and desired delivery location or receiving plant (see
Figure 4-14). In addition, a material number is needed for stock items, and
an account assignment object may be required depending on the item cate-
gory selected. The ERP system uses the material number to obtain additional
data from the material master such as description, material group, purchasing
group, unit of measure, and valuation price. The delivery date and location are
typically provided by the requisitioner, but they can also be obtained from the
material master.

Figure 4-14: Data in a purchase requisition

The organizational data needed to create a purchase requisition are
the purchasing group and the receiving plant. These data are typically
obtained from the material master. User input can provide or override these
data as needed.

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