What Are PR and PO? What Is the Difference Between Them?

PR (Purchase Requisition) is an internal purchase request used to seek approval for a purchase, while PO (Purchase Order) is a purchase order issued by the purchasing department to a supplier after the PR has been approved. In short, PR means “request to purchase,” while PO means “place an order.”

 

What Are PR and PO?

PR and PO are two important documents in the purchasing process. A PR is the first step used to plan and control purchasing, while a PO is used to confirm and control the purchase of goods or services specified in the PR. A PO also serves as a record and helps track purchasing afterward.

 

Purchase Requisition (PR)

PR stands for Purchase Requisition, meaning “Purchase Requisition.” It is an internal document used to request the purchase of goods or services needed for operations within adepartmentor within the organization. The document must receiveapprovalfrom the authorized approver in the relevant department. Once approved, it is forwarded to the purchasing department so that a PO can be issued.

 

Key Information a Purchase Requisition (PR) Should Include

• Requesting department
• Purchase request date
• Reason for the purchase request
• Details of goods/services
• Quantity of goods
• Price of goods (if applicable)
• Requester/preparer
• Approver

 

Example of a Purchase Requisition (PR)

 

 

Purchase Order (PO)

PO stands for Purchase Order, meaning “Purchase Order.” It is a document issued by the company’s purchasing department as an official order. A PO is created after a PR and is then sent to the supplier or vendor to order the goods required by the company. The supplier must accept and confirm the PO before fulfilling the order.

 

Note: Some companies may set purchasing authority limits for purchasing managers. If the value of the goods or services exceeds the specified limit, approval from a company director may be required.

 

Key Information a Purchase Order (PO) Should Include

• Name, address, and tax ID of the purchasing company
• Name, address, and tax ID of the supplier/service provider
• Order date
• Details of goods/services
• Quantity of goods
• Price of goods
• Total amount of all goods ordered
• Preparer
• Approver

 

Example of a Purchase Order (PO)

 

 

Differences Between PR and PO

Comparison	PR (Purchase Requisition)	PO (Purchase Order)
Document Name	Purchase Requisition	Purchase Order
Preparer	Department or individual within the organization requesting the purchase	Purchasing Department
Purpose	Indicates the need or requirement to purchase goods/materials	Used to order goods/services from a supplier
When It Is Created	When there is a need to make a purchase	After the PR has been reviewed and approved
Key Information	Details of the goods or materials to be purchased and the reason for the purchase	Product type, quantity, price, and other purchasing details
approval	Approved by the relevant department head	Approved by the purchasing manager or an authorized person according to the approval limit
Sent To	Forwarded to the purchasing department after approval	Sent to the supplier to prepare and deliver the goods

*Information as of September

 

Summary of the Differences Between PR and PO

A PR is a purchase requisition used internally to propose a purchasing need and request approval. A PO is a purchase order issued by the purchasing department to the supplier after the PR has been approved. Therefore, PR is the “request to purchase” step, while PO is the “place an order” step.

 

FAQ: Frequently Asked Questions About PR and PO

Q: Can a PR be edited after it has been submitted for approval?

A: It depends on each organization’s workflow and approval system. If the PR is still under review, it may need to be canceled or returned for editing before proceeding.

 

Q: Do PR and PO need document numbers?

A: Document numbers should be assigned to make purchase records easier to identify and review. The numbering format depends on each organization’s system.

 

Q: What should be done if an urgent purchase is made without a PR?

A: The organization’s purchasing policy should be followed. Some organizations may have specific procedures or exceptions for urgent cases.

 

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