The official business definition of Requisition and Purchase Order is a process used by companies to acquire goods and services from external sources. It is a two-step process that begins with a requisition, which is a request for goods or services from an external source. This request is then followed by a purchase order, which is a legally binding document that outlines the terms and conditions of the purchase. The purchase order serves as a contract between the buyer and the seller, and is typically used to track the order, confirm the price, and ensure payment. Requisition and Purchase Order is an important part of the procurement process, as it helps to ensure that goods and services are acquired in a timely and cost-effective manner.