Question

A requisition communicates internal need, a PO is a request made to external suppliers. a. True b. False

Answer 1

Answer:

a. True.

Explanation:

If there is need for purchasing goods in a company then a purchase requisition is initiated by the department. This purchase requisitions is then processed to initiate purchase order after the requirement for goods is confirmed. The purchase order is sent to external supplier to confirm purchasing of goods or services. This is a commercial document which helps control the purchasing in the organization. This document clearly mentions the quantity, price and any additional features of the product which are required by the company.

Answer 2

Answer:

The correct answer is letter "A": True.

Explanation:

A requisition is a formal request for goods or services an employee of a company makes to a higher line of command within the same institution. In case the good or service cannot be provided with the internal resources of the firm, a Purchase Order (PO) is issued to the corporation's suppliers to fulfill the initial requisition.