CPIM Practice Exam

After a purchase requisition is generated, what is the immediate next step in the purchasing cycle?

1. Follow up

2. Approve payment

3. Receive goods

4. Issue purchase order

The correct answer is: Issue purchase order

The immediate next step in the purchasing cycle after a purchase requisition is generated is to issue a purchase order. This step is crucial as it formally communicates to the supplier the intent to purchase specified goods or services under defined terms and conditions. The purchase order serves as a binding contract between the buyer and the seller, outlining the details of the transaction including quantities, delivery dates, and pricing. Issuing the purchase order is a direct response to the requisition and is essential for initiating the procurement process. It ensures that there is clear documentation of the request, which helps in maintaining accurate records for both the buyer and supplier. Following the purchase order, subsequent actions such as receiving goods and approving payments take place. However, these actions depend on the prior issuance of the purchase order, solidifying its role as the key next step in the cycle.