What must happen for a Purchase Requisition to become a Purchase Order?

For a Purchase Requisition to become a Purchase Order, it must be converted into a purchase order. This conversion process is a fundamental step that allows the purchasing organization to formally commit to the purchase of goods or services from a supplier. When a Purchase Requisition is initiated, it serves as a request for approval to procure items, but it does not have any binding agreement with the supplier until it is transformed into a Purchase Order.

The Purchase Order is a legal document sent to the vendor, detailing what is being ordered, the quantities, prices, and agreed-upon terms. This step is essential as it provides both the buyer and seller with clarity on the transaction, thus enabling the fulfillment of the order and proper tracking of the procurement process.

Other options pertain to various aspects of purchase and accounting processes but do not directly relate to the required step for the transition from Purchase Requisition to Purchase Order. For example, vendor approval is not necessary for the internal process of converting a requisition into an order, and general ledger entry happens subsequently in the financial workflow after the purchase is made. Similarly, creating a new invoice is a separate action that occurs post-purchase and does not facilitate the transformation of a Purchase Requisition into a Purchase Order.