Question

A purchase requisition can result in multiple purchase orders, and multiple requisitions can be combined into one purchase order. Explain, with examples, the circumstances when these two scenarios are possible.

Answer 1

Solution:

A purchasing manager receives many requisitions for the same materials and decides to consolidate them into a single purchase order and send the order to one vendor, perhaps to take advantage of volume discounts. In this scenario multiple requisitions are combined into a single purchase order.

Alternatively, a single requisition may include a number of different materials that must be purchased from different vendors. In this case, the purchasing manager creates a different purchase order for each vendor that includes the relavent materials.