# Purchase Requisition and Purchase Order: [Requisition or PO number]

> Two linked forms: the internal purchase requisition that asks for
> approval to buy, and the purchase order (PO) that commits the
> organisation to a supplier, with line items, delivery terms,
> Incoterms rule where goods cross borders, and the key terms of
> purchase. Delivery terms use rule names from ICC Incoterms 2020
> (in force since 2020-01-01, the current edition listed by ICC on
> 2026-10-30). Replace every `[bracketed]` value and every row marked
> *Example*. This is a documentation format, not legal advice: check
> the current official text and a qualified professional.

<!--
Guidance: How to use this template
- Purpose: get spend approved before it is committed, and give the
  supplier an order that is complete enough to deliver and invoice
  against without further questions.
- Fill Part A (requisition) first; procurement or the system converts
  an approved requisition into Part B (purchase order). In an ERP the
  same fields exist as screens; use this file to design or audit them.
- Values exclude VAT or sales tax for approval purposes. The
  competition required and the approver come from the Procurement
  Policy (`procurement/procurement-policy`) and the Delegation of
  Authority Matrix (`finance/delegation-of-authority-matrix`).
- Invoice matching and payment controls are in the Procure-to-Pay and
  Expense Policy (`finance/procure-to-pay-and-expense-policy`).
- Worked example: the fictional Corvanna Instruments Ltd orders
  housings from the fictional Ostrelby Castings Ltd under supply
  agreement CTR-001 (`procurement/contract-register`). All figures are
  computed and marked *Example*.
-->

## Document control

<!-- Guidance: Requisitions and POs are controlled records. Keep the number series, the version of the terms of purchase and the system of record. -->

| Field | Value |
|---|---|
| Form ID | [FRM-PO-NNN] *Example:* FRM-PO-002 |
| Version | [1.0] |
| Owner | [@head-of-procurement] |
| Terms of purchase version | [TOP v3.1, YYYY-MM-DD] |
| System of record | [ERP purchasing module] |
| Last updated | YYYY-MM-DD |
| Classification | [Internal; PO shared with supplier] |

### Revision history

| Version | Date | Author | Change summary |
|---|---|---|---|
| 0.1 | YYYY-MM-DD | [@name] | First draft |
| 1.0 | YYYY-MM-DD | [@name] | *Example:* Incoterms field and delivery schedule added |

## Part A. Purchase requisition

<!-- Guidance: The requisition is internal. It must say what is needed, why, how much it costs over its whole term, and which sourcing route was followed. Pitfall: a requisition raised after the supplier has already delivered. -->

### A1. Requester and budget

| Field | Value |
|---|---|
| Requisition number | [PR-YYYY-NNNNNN] *Example:* PR-2026-011547 |
| Date raised | YYYY-MM-DD *Example:* 2026-10-27 |
| Requester | [@name, department] *Example:* [@planner], Production planning |
| Entity and cost centre | [Entity, cost centre] *Example:* Corvanna Instruments Ltd, CC-4100 Assembly |
| Budget line and remaining budget | [Line, amount] |
| Need-by date | YYYY-MM-DD *Example:* 2026-11-20 |
| Business reason | [Why this is needed now] *Example:* Housings for the Q1 2027 production plan of the AX-4 analyser |

### A2. Sourcing route

| Question | Answer |
|---|---|
| Existing contract or framework covering the need? | [Yes, contract ID / No] *Example:* Yes, CTR-001 supply agreement |
| Total contract value band under the procurement policy | [A / B / C / D] |
| Competition evidence | [Quotes attached, tender reference, or single-source justification ID] *Example:* Not needed: call-off under CTR-001, awarded after tender TND-2024-007 |
| Preferred supplier and supplier number | [Name, number] *Example:* Ostrelby Castings Ltd, SUP-10233 |
| Supplier onboarded and risk tier current? | [Yes, tier, review date] (`procurement/supplier-onboarding-due-diligence`) |
| Personal data, system access or on-site work? | [Yes or no; if yes, contract and DPA reference] |

### A3. Lines requested

| Line | Item or service | Quantity | Unit | Estimated unit price | Estimated line value | GL account |
|---|---|---|---|---|---|---|
| 10 *(Example)* | HSG-220 machined housing, drawing rev C | 400 | Each | GBP 38.75 | GBP 15,500.00 | 5010 |
| 20 *(Example)* | HSG-310 cast housing, drawing rev B | 250 | Each | GBP 52.40 | GBP 13,100.00 | 5010 |
| 30 *(Example)* | Tooling modification for HSG-310 | 1 | Lot | GBP 2,400.00 | GBP 2,400.00 | 1650 |
| | **Total (excl. VAT)** | | | | **GBP 31,000.00** | |

### A4. Approval

| Step | Approver | Decision | Date |
|---|---|---|---|
| Budget holder | [@name] | [Approved / Rejected] | YYYY-MM-DD |
| Additional approver per DoA (if above limit) | [@name] | [Approved / Rejected] | YYYY-MM-DD |
| Procurement check (route, supplier, terms) | [@buyer] | [Released to PO] | YYYY-MM-DD |

*Example:* GBP 31,000.00 is a call-off under an awarded contract, so
no new competition is needed; the budget holder approves within the
call-off limit in the delegation of authority matrix and procurement
releases the PO.

## Part B. Purchase order

<!-- Guidance: The PO is the contract document the supplier sees. It must be complete, unambiguous and reference the governing terms. Pitfall: free-text lines such as "as discussed", which make matching and dispute resolution impossible. -->

### B1. Header

| Field | Value |
|---|---|
| PO number | [PO-YYYY-NNNNNN] *Example:* PO-2026-004812 |
| PO date | YYYY-MM-DD *Example:* 2026-10-28 |
| Buyer entity, address and tax number | [Legal name, registered address, VAT or tax ID] |
| Supplier, address and supplier number | [Legal name, address, number] *Example:* Ostrelby Castings Ltd, SUP-10233 |
| Buyer contact | [@buyer, email, phone] |
| Governing terms | [Contract ID, or the terms of purchase version] *Example:* Supply agreement CTR-001; where silent, Corvanna terms of purchase v3.1 |
| Currency | [GBP / EUR / USD] |
| Payment terms | [Net 30 days from receipt of valid invoice] |
| Invoice to | [AP mailbox or e-invoicing ID]; quote the PO number on every invoice |

### B2. Lines

| Line | Supplier part or service | Description | Quantity | Unit | Unit price | Line value | Delivery date | Ship to |
|---|---|---|---|---|---|---|---|---|
| 10 *(Example)* | OC-HSG220C | HSG-220 machined housing, drawing rev C | 400 | Each | GBP 38.75 | GBP 15,500.00 | 2026-11-18 | Goods-in, Kestrel Road site |
| 20 *(Example)* | OC-HSG310B | HSG-310 cast housing, drawing rev B | 250 | Each | GBP 52.40 | GBP 13,100.00 | 2026-11-18 | Goods-in, Kestrel Road site |
| 30 *(Example)* | OC-TOOL-310 | Tooling modification, HSG-310, first article inspection report required | 1 | Lot | GBP 2,400.00 | GBP 2,400.00 | 2026-11-11 | Supplier site (tool stays with supplier) |

| Summary | Amount |
|---|---|
| Subtotal (excl. VAT) | GBP 31,000.00 *(Example)* |
| VAT at [20%] | GBP 6,200.00 *(Example)* |
| Total | GBP 37,200.00 *(Example)* |

### B3. Delivery terms and Incoterms rule

<!-- Guidance: For domestic deliveries, state the delivery address and who unloads. For cross-border sales of goods, name one Incoterms 2020 rule plus a precise named place, and keep it consistent with the contract and the freight booking. Pitfall: FOB used for containers handed over at an inland depot, where FCA fits. -->

| Field | Value |
|---|---|
| Incoterms rule and named place | [Rule, precise place, "Incoterms 2020"] *Example:* Domestic delivery, not applicable. For an import the line would read "FCA [named place], Incoterms 2020" |
| Delivery window | [Earliest and latest acceptable date] *Example:* 2026-11-16 to 2026-11-18 |
| Partial deliveries | [Allowed / Not allowed] |
| Packaging and labelling | [Standard, labels with PO and line number] |
| Documents with delivery | [Delivery note, certificate of conformity, inspection report] |
| Inspection and acceptance | [Incoming inspection within N working days] |

The eleven Incoterms 2020 rules, named only (ICC publishes the rule
text; obtain it from ICC):

| Mode | Rules |
|---|---|
| Any mode of transport | EXW, FCA, CPT, CIP, DAP, DPU, DDP |
| Sea and inland waterway only | FAS, FOB, CFR, CIF |

Incoterms rules deal with delivery, risk transfer, costs and customs
formalities between seller and buyer. They do not decide title,
payment or remedies for breach; those come from the contract and terms
of purchase. For shipments, see Shipment Booking Instructions
(`logistics/shipment-booking-instructions`).

### B4. Key terms of purchase

<!-- Guidance: Summarise only; the full terms of purchase or the contract govern. Make sure the supplier has accepted them before the first order. -->

| Term | Summary |
|---|---|
| Order of precedence | Signed contract, then this PO, then terms of purchase; supplier terms on quotes or delivery notes do not apply |
| Acceptance | The supplier accepts by written acknowledgement within [2] working days or by starting performance |
| Changes | Only by a PO amendment issued by procurement |
| Warranty | [Period] from acceptance; goods conform to drawings and specifications |
| Price | Fixed for this order; no surcharges unless the contract allows them |
| Compliance | Supplier Code of Conduct (`procurement/supplier-code-of-conduct`), sanctions and export control laws |
| Confidentiality | Drawings and specifications are confidential and returned on request |
| Cancellation | [Terms for cancellation before dispatch] |

### B5. Supplier acknowledgement

| Field | Value |
|---|---|
| Acknowledged by | [Name, role] |
| Date | YYYY-MM-DD |
| Confirmed delivery date per line | [Dates] |
| Exceptions raised | [None, or list] |

## Lifecycle

<!-- Guidance: Show the path from need to match so that every role sees where its step sits. -->

Each step is done by a different role, so no single person can raise,
approve, receive and pay for the same order.

```mermaid
flowchart LR
  A["Requisition raised"] --> B["Budget holder approves"]
  B --> C["Procurement checks route and supplier"]
  C --> D["PO issued to supplier"]
  D --> E["Supplier acknowledges"]
  E --> F["Goods or service received"]
  F --> G["Invoice matched to PO and receipt"]
```

## Common errors checklist

<!-- Guidance: Use this list when reviewing a sample of POs each month. -->

- [ ] PO dated after the invoice (retrospective order)
- [ ] Several POs to the same supplier on the same day just below an
      approval threshold (split order)
- [ ] Free-text lines with no unit of measure or quantity
- [ ] Incoterms rule without a named place, or an old edition cited
- [ ] Ship-to address missing or a person's home address
- [ ] Supplier not onboarded, or bank details unverified
- [ ] Contract expired (check `procurement/contract-register`)

## Glossary and references

<!-- Guidance: Keep definitions in your own words. -->

| Term | Meaning |
|---|---|
| Requisition | Internal request to buy, approved before any commitment |
| Purchase order | Buyer's formal order to a supplier, which becomes a contract on acceptance |
| Call-off | Order placed under an existing framework or supply agreement |
| Named place | Exact location that, together with the Incoterms rule, fixes where delivery and risk transfer happen |

| Reference | Version or date | URL |
|---|---|---|
| ICC Incoterms rules | Incoterms 2020, in force 2020-01-01, listed by ICC as the most recent version (checked 2026-10-30) | Official text: ICC, purchase or licensed access: https://iccwbo.org/business-solutions/incoterms-rules/ |

## Standard and licence note

Based on common purchasing practice. Incoterms is a trademark of the
International Chamber of Commerce; Incoterms 2020 rule names are cited
only and no rule text is reproduced. Corvanna Instruments, Ostrelby
Castings and all figures are fictional. The text is original and is
not legal advice. Template licence: MIT.