Which document is issued to the supplier to authorize shipment after a requisition is approved?

Which document is issued to the supplier to authorize shipment after a requisition is approved?

• A. Invoice
• B. Requisition
• C. Purchase order
• D. Receiving report

Answer: (C)

After a requisition is approved, the document that authorizes the supplier to ship is the purchase order. A purchase order is issued by the buyer to the supplier and spells out what is being bought, the quantities, agreed price, delivery terms, and delivery location. It functions as the official instruction to the supplier to proceed with shipment and provides a formal, auditable contract between buyer and supplier. This authorization step ensures that shipments align with what was approved, helps control costs, and gives both sides a clear record for tracking, receiving, and payment. The other documents play different roles: an invoice is the supplier’s bill presented after goods or services have been provided; a requisition is the internal request that initiates the purchasing process; and a receiving report documents what actually arrives, used to confirm quantities and quality against the purchase order.

After a requisition is approved, the document that authorizes the supplier to ship is the purchase order. A purchase order is issued by the buyer to the supplier and spells out what is being bought, the quantities, agreed price, delivery terms, and delivery location. It functions as the official instruction to the supplier to proceed with shipment and provides a formal, auditable contract between buyer and supplier. This authorization step ensures that shipments align with what was approved, helps control costs, and gives both sides a clear record for tracking, receiving, and payment.

The other documents play different roles: an invoice is the supplier’s bill presented after goods or services have been provided; a requisition is the internal request that initiates the purchasing process; and a receiving report documents what actually arrives, used to confirm quantities and quality against the purchase order.