Question

Purchase indent is an

• A. Legal document
• B. Internal document
• C. External document
• D. Property document

Hint:

A purchase indent is typically an internal document that communicates the need for specific goods or materials within an organization.

Answer 1

The Correct Option is B

Think about who writes the purchase indent and who receives it. It is raised by a user department such as production or stores, and it is sent to the purchase department of the very same company, simply asking that department to buy certain materials. It never travels to an outside party the way a purchase order does, it creates no legal obligation the way a contract does, and it has nothing to do with property ownership. Because it stays entirely within the organisation, it is classified as an internal document.

Answer 2

We can also reach the answer by tracing the purchasing cycle step by step and locating exactly where the indent sits in that flow.

1. Legal document: Legal force enters the purchasing cycle only once a contract or purchase order is signed with a supplier; the indent is raised well before that stage and carries no legal weight of its own.
2. Internal document: The very first step of the cycle is a department raising an indent to notify the purchase department of its material requirement - a purely intra-company communication.
3. External document: External communication (quotations, purchase orders, invoices) begins only after the purchase department acts on the indent and contacts suppliers; the indent itself never reaches a supplier.
4. Property document: Documents of title/ownership are relevant to fixed assets or land, an entirely different area of business documentation with no bearing on routine material requisitions.

Tracing the cycle this way confirms the indent belongs to the very first, purely internal stage of procurement.

Therefore, the correct answer is Internal document.