Which step in the purchasing process involves requesting authorization to purchase goods or services?

• A. Negotiation
• B. Request for quotation
• C. Requisition
• D. Receiving

Answer: (C)

The step in the purchasing process that involves requesting authorization to purchase goods or services is the requisition. This process serves as a formal request created by an employee or department to procure specific items or services necessary for operations. The requisition details what is needed, the quantity, and any relevant specifications, and is typically forwarded to the purchasing department for approval.

The requisition is a crucial step because it ensures that expenditures are accounted for and that purchases are made in alignment with the organization's budgetary constraints and procurement policies. This formal request also facilitates communication between departments, helping to avoid misalignment or misunderstandings regarding procurement needs.

In contrast, stages such as negotiation focus on finalizing pricing and contractual agreements after a requisition has been approved. Request for quotation is a stage where potential suppliers are invited to submit bids, usually following the creation of a requisition. Receiving pertains to the acceptance and verification of goods or services after the purchase has been completed, not the authorization needed to initiate a purchase.