What is a purchase indent?

A purchase indent is an internal request to buy goods or services, raised by a department or store and routed for approval before any order is placed with a vendor. In Indian organisations the word 'indent' is commonly used to mean what is elsewhere called a purchase requisition.

Purchase Indent — Meaning and Difference from a PO

Q: Is an indent the same as a purchase requisition?

Yes. 'Indent' and 'purchase requisition' refer to the same thing — an internal, pre-approval request to procure something. 'Indent' is the more common term in Indian manufacturing, stores and government contexts; 'purchase requisition' is the term used in most ERP systems. Both precede the purchase order.

Q: What is the difference between an indent and a purchase order?

An indent is an internal document: it records a need and is approved within the organisation, but it commits nothing to any supplier. A purchase order is the external document issued to the vendor after the indent is approved; once accepted it is a binding contract. The indent comes first and authorises the order; the purchase order places it.

Q: Who raises a purchase indent?

The department or store that needs the item raises the indent — production raising a material indent for raw materials, a store raising a stores indent to replenish stock, or maintenance raising one for spares. It is then approved by the relevant authority before procurement converts it into a purchase order.

A purchase indent is an internal request to procure goods or services, raised by a department or store and approved before any order goes to a vendor. In Indian organisations the word indent is the everyday term for what ERP systems call a purchase requisition — the two mean the same thing. The indent always comes before the purchase order.

What an Indent Is

An indent captures a need and sends it through the approval chain. It records what is wanted, how much, and why — but it carries no commitment to any supplier and has no effect outside the organisation. Its purpose is authorisation: spending is approved internally on the indent before procurement is allowed to place an order.

The term shows up in several variants depending on who raises it:

Material indent — raised by production for raw materials or components.
Stores indent — raised by a store to replenish stock from a central warehouse or to buy in.
Maintenance indent — raised by maintenance for spares and consumables.

Indent vs Purchase Order

Aspect	Purchase Indent	Purchase Order
Direction	Internal request	External order to a vendor
Created by	Requesting department or store	Procurement
Effect on vendor	None	Binding once accepted
When it occurs	First — before the order	After the indent is approved
Also called	Purchase requisition	PO

Where It Fits

The indent is the first step of the procure-to-pay cycle: indent (requisition) → purchase order → goods receipt note → invoice and three-way match. Approving the indent before the order is what keeps purchasing authorised and traceable.

Frequently Asked Questions

Is an indent the same as a purchase requisition?

Yes. Both refer to an internal, pre-approval request to procure something. 'Indent' is the more common term in Indian manufacturing, stores and government contexts; 'purchase requisition' is the term used in most ERP systems. Both precede the purchase order.

What is the difference between an indent and a purchase order?

An indent is internal and commits nothing to a supplier. A purchase order is the external document issued to the vendor after the indent is approved; once accepted it is binding. The indent authorises the order; the purchase order places it.

Who raises a purchase indent?

The department or store that needs the item — production for materials, a store for stock replenishment, maintenance for spares. It is then approved before procurement converts it into a purchase order.