Purchase Requisition (BANF)
A purchase requisition (German: BANF) is an internal, formal procurement request from a department to purchasing. It reports a specific need but does not itself place an order with a supplier.
A purchase requisition (German: Bestellanforderung, BANF) is an internal, formal request from a department to purchasing to procure a specific need. It documents what is needed, in what quantity, by when and for what purpose – but it is not yet a legally binding document toward a supplier. Only once purchasing reviews and approves the requisition does it become a purchase order.
The requisition is therefore the first structured step in the procurement process: it separates the requester (for example production, warehouse or maintenance) from the purchasing function and ensures that every expense is requested, reviewed and released before money is committed. In ERP systems, the purchase requisition is a dedicated document type that bundles needs, controls approvals and flows seamlessly into the later purchase order.
At a glance
- Internal demand notice to purchasing – not yet an order.
- Only converted into a purchase order after approval.
- Separates the requester (department) from the procuring function (purchasing).
- Core element of the purchase-to-pay chain and internal control.
- A dedicated ERP document type with an approval workflow and links to purchase order and goods receipt.
What is a purchase requisition (BANF)?
A purchase requisition – in German Bestellanforderung, abbreviated BANF – is an internal document with which a department notifies purchasing of a procurement need. The term "BANF" originally comes from the SAP world but has become established in German-speaking regions as a generic label. The request describes the need specifically enough for purchasing to act without follow-up questions.
The legal classification is important: the requisition takes effect only internally. It obliges purchasing to deal with the need but creates no obligation toward a supplier. This fundamentally distinguishes it from the purchase order, which acts outwardly as a declaration of intent.
How does a purchase requisition work?
A requisition is triggered by a specific need – for example material for a production order, consumables or an investment. The requester records the request, purchasing reviews it and, after release, converts it into a purchase order. The process usually follows a fixed pattern of capture, approval and conversion.
A distinction is made between direct and indirect procurement: for direct material the requisition often flows automatically from demand planning, whereas indirect needs – office supplies, tools, services – are typically requested manually. In both cases a uniform requisition process ensures that no purchase bypasses the structured route and that purchasing always retains a complete overview of demand.
Typical contents of a requisition
A complete purchase requisition usually contains: item or material number and description, the quantity needed and unit of measure, the required date (by when), the requesting cost center or cost object, the requester and optionally a preferred supplier or reference price. For free-text items without a material master, a text description takes the place of the material number.
Created manually or automatically
Requisitions arise in two ways. Manually, an employee creates one when a need occurs. Automatically, the ERP system generates it via demand planning: if stock falls below the reorder point or material requirements planning (MRP) determines a secondary demand, a purchase proposal is created first and handed over to purchasing as a requisition.
Why the purchase requisition matters
The requisition is a central instrument of internal control. It enforces the four-eyes principle: whoever registers a need is not the same person who enters into the obligation toward the supplier. Configurable approval thresholds – for example by amount or product group – control the value above which additional approval is required. This reduces mistaken purchases, maverick buying and compliance risks.
At the same time the purchase requisition creates transparency and traceability. Every need is documented, every approval step recorded in the audit trail. Purchasing can bundle similar requests, negotiate better terms and use framework agreements instead of letting each department order individually. In this way the requisition becomes a lever for strategic procurement rather than mere needs coverage.
Budget control and commitment
As soon as a purchase requisition is approved and converted into a purchase order, a commitment arises – a value-based reservation on the affected cost center. This makes it visible even before invoice receipt which funds are tied up. Many ERP systems already check the requisition against the stored budget and thus prevent needs from being requested beyond the released funds.
The purchase requisition in the ERP system
In modern ERP and inventory management systems, the purchase requisition is a dedicated document type within purchasing. It links demand determination and the purchase order and is connected via document flows to upstream and downstream documents. From an approved document, conversion produces the purchase order – line items, quantities and accounts are carried over without having to re-enter data.
The approval workflow maps permissions and value limits: the system automatically routes the requisition to the responsible approvers and documents every step. Through the connection to demand planning, reorder point and MRP, requests can be generated automatically. After the order, the loop closes via goods receipt and invoice verification – together these steps form the purchase-to-pay or procure-to-pay process. Systems such as those listed in the profiles cover this flow to varying depths, from simple purchase proposals to multi-level approval hierarchies.
Distinction: requisition vs. order, purchase proposal and quotation
The purchase requisition is often confused with neighboring documents. The most important boundary runs toward the purchase order: the requisition is a purely internal demand document, while the order is an outward-facing, legally binding order to the supplier. A purchase proposal, in turn, is a recommendation determined by the system (from demand planning or MRP) that does not yet constitute a formal request – often a confirmed purchase proposal becomes a requisition.
The purchase requisition must also be separated from the quotation: the quotation comes from the supplier and states price and terms; the requisition is the upstream internal notice of one’s own need. In practice, purchasing requests quotations based on a requisition, compares them and then converts the request into a purchase order.
Example
A requisition in a mid-sized trading company
At a trading business, the stock of a fast-selling item falls below the stored reorder point. The ERP system automatically generates a purchase proposal and hands it to purchasing as a requisition. The warehouse manager adds the desired date and the affected cost center and releases the requisition.
Because the order value exceeds the stored approval threshold of 5,000 euros, the system additionally routes the request to the head of purchasing. After their approval, the clerk converts the requisition into a purchase order with a single click; item, quantity and account are carried over. At the later goods receipt and in invoice verification, it can be traced without gaps who registered and approved the need.
Frequently asked questions
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