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What is a purchase order (PO)? What is three-way matching? What is the difference between two-way, three-way, and four-way matching? What is a goods receipt note (GRN)? What information does a purchase order typically contain? What is a contract or catalog PO versus a spot PO? What is matching tolerance and why is it used? What are common causes of a three-way match failure? How are partial deliveries and partial invoices matched against a PO? What is a blanket (standing) purchase order?
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Accounts Payable & Receivable › Purchase Orders & 3-Way Matching

What is a requisition and how does it relate to a PO?

Beginner

Answer

A purchase requisition is an internal request to buy something, raised by a department and routed for approval. Once approved, procurement converts it into a purchase order sent to the supplier. The requisition captures the need and budget approval; the PO is the external commitment to the vendor.
Real-world example An engineer submits a requisition for test equipment; after manager approval, procurement issues a PO to the vendor.

Common follow-ups: Who approves a requisition? | Can a PO exist without a requisition?

Purchase Orders & 3-Way Matching Vendor Management Invoice Processing
All 21 Purchase Orders & 3-Way Matching questions