In a new procurement process, what step is essential to ensure that all purchase requisitions are approved before creating a purchase order?

In the procurement process, obtaining manager approval is a crucial step. This step ensures that all purchase requisitions undergo a review process, aligning with organizational policies and budget constraints before any purchase order is created. The approval from a manager acts as a check and balances mechanism, verifying that the requested purchases are necessary and appropriately justified.

This step not only helps mitigate the risk of unauthorized purchases but also contributes to maintaining control over procurement spending. Once the requisition is approved, it signifies that the purchase is legitimate and authorized, allowing for the creation of the purchase order in the next phase of the procurement workflow.

While creating a purchase requisition is part of the procurement process, it does not ensure that the requisition has been sanctioned for purchase. The creation of a purchase order naturally follows after approval, and goods receipt is the process that happens after a purchase order is fulfilled, making them less relevant for the intention of ensuring all requisitions are approved first.