Which step must occur after a Purchase Requisition (PR) is created?

After a Purchase Requisition (PR) is created, the next essential step is its approval process. This step is important because the approval ensures that the requisition aligns with the organization’s procurement policies and budget constraints. The approval verifies that the need for the purchase is justified and that there are available funds to cover the expense. It acts as a control mechanism to prevent unauthorized spending and to ensure that procurement decisions are made responsibly.

Following the PR approval, the organization may then proceed with sourcing and purchasing activities, ensuring proper governance in the procurement process. This systematic approach helps maintain the integrity of financial management and compliance with relevant regulations.