Category: Inventory & Asset Management

A project requisition should not automatically become a purchase order. The first question is whether the required material already exists in stock or has already been allocated to the project.

Demand starts with the requirement

The requisition records what the project needs, when it is needed and for which activity or cost code. That demand can come from an estimate, bill of quantities, work package or field request.

Check availability before procurement

An integrated system can compare the requirement against available stock, reserved stock and material already committed on open purchase orders. Items on hand can be allocated; only the shortage should move to procurement.

Allocation is not the same as physical issue

Allocation reserves material for a project without necessarily moving it. Issue or consumption occurs later when the item physically leaves stores or is installed.

Why this matters

Without allocation logic, different projects may believe the same stock is available or buyers may order items that already exist. Linking requisitions, inventory and purchasing reduces duplicate procurement and improves cash control.

Related application: A practical ERP workflow checklist for UAE MEP contractors illustrates how requisitions can fit into the wider quotation, project, purchase order and goods-receipt process.

A Goods Received Note (GRN) records what was actually received against a purchase order. It is a key control point between procurement, inventory, project delivery and supplier invoicing.

Why partial receipts matter

Suppliers often deliver purchase orders in stages. A useful GRN process therefore records line-level quantities received, accepted, rejected and still outstanding rather than simply marking the whole PO as complete.

Stock items vs project items

Stock items may increase warehouse inventory, while project-specific items can be received directly against a project or designated storage location. The accounting and ownership logic should remain traceable.

Three-way matching

Many organizations compare the purchase order, goods receipt and supplier invoice before payment. The PO shows what was ordered, the GRN shows what arrived, and the invoice shows what is being billed.

Data quality

Item code, unit of measure, quantity, project, supplier and PO reference should remain consistent through the process. Good master data reduces manual corrections later.