Landed costs – requests for quotation (RFQs)

This topic explains how landed costs are used in combination with requests for quotation (RFQs).

Note

After receiving the bidders' RFQ responses, the landed costs can be considered when comparing the results. Landed costs can be charged by the supplier of the goods (bidder), and also by a third party supplier, such as the carrier responsible for the transport of the goods.

Bidder landed costs are applicable if the Buy-from Business Partner of the landed cost line and the Bidder of the RFQ are the same. If not, third party landed costs are applicable. Both bidder landed costs and third party landed costs can be linked to an RFQ.

Bidder landed costs can be negotiated during the RFQ negotiation process. Third party landed costs cannot be negotiated.

Landed costs - RFQ Bidder

To link landed costs to an RFQ Bidder, the following steps are executed:

Step 1. Search for RFQ Bidder landed costs

When an RFQ bidder is specified, LN searches for active landed costs sets in the Scenarios by Landed Costs Set (tclct1105m100) session, based on:

Step 2. Link landed costs to RFQ Bidder

When a landed costs set is identified, the landed costs are saved in the Landed Cost Lines (tclct2100m000) session. This session is linked to the RFQ Bidder in the RFQ Bidders (tdpur1505m000) session. The Landed Cost Line Origin is set to Master Data for these RFQ Bidder landed cost lines.

Step 3. Update landed cost lines

If required, you can manually update the retrieved landed cost lines and add or delete the lines. This is only applicable if no Accepted or Processed responses exist for the RFQ Bidder. Updates to RFQ Bidder landed costs are synchronized with the landed costs of the related RFQ Responses.

Note
  • The RFQ bidder does not include quantity, price, or amount data. Therefore, no landed cost amount is calculated for the RFQ Bidder.
  • To retrieve specific landed costs for an RFQ Bidder, you can specify the Landed Costs Classification field in the RFQ Bidders (tdpur1505m000) session.
Landed costs - RFQ Response

RFQ Responses are generated and the landed costs are retrieved automatically. The landed costs are retrieved when the status of the response line is Responded or Negotiating.

RFQ Response landed costs can be:

  • Synchronized from the RFQ Bidder.
  • Apportioned from the RFQ Bidder. This applies to landed costs for which the Calculation Method field is set to Fixed Amount and the Fixed Amount Level is Order Header, Shipment Notice, or Receipt Header in the Landed Cost Lines (tclct2100m000) session. Apportioned lines are not negotiable and cannot be updated on the RFQ Response.
  • Defaulted from the master data.

    LN searches for active landed costs sets in the Scenarios by Landed Costs Set (tclct1105m100) session, based on:

    • The Landed Costs Search Date, as specified in the Landed Costs Parameters (tclct0100m000) session.
    • The Used for field, which must be Order Line or Schedule and Order Line.
    • The RFQ Response search fields, which must match the landed costs scenario's search attributes.
    • The Priority.
    To avoid creating the same landed costs twice, the synchronized landed costs are skipped.

When a landed costs set is found, the landed costs are stored in the Landed Cost Lines (tclct2100m000) session. This session is linked to the RFQ Response in the RFQ Responses (tdpur1506m000) session. The Landed Cost Line Origin is set to RFQ Bidder or Master Data for these RFQ Response landed cost lines.

You can update, add, or delete the landed cost lines. After an RFQ negotiation is available for the response line in the RFQ Negotiations (tdpur1606m000) session, you can no longer update the landed costs for the response line. LN synchronizes the last negotiation line's landed costs with the response line.

Note

In the RFQ Responses (tdpur1506m000) session:

  • Specify the Landed Costs Classification field to retrieve specific landed costs for an RFQ Response.
  • You can view the bidder landed costs and the third party landed costs separately for the linked landed costs.
Landed costs - RFQ Negotiation

An RFQ negotiation can be used to negotiate about the bidder's response. When specifying the first negotiation line, the landed costs from the RFQ Response are copied to the RFQ Negotiation. Apportioned landed cost lines are not displayed, because the lines are not negotiable.

An RFQ negotiation includes the response of the bidder and counter proposal of the buyer which are linked to their respective landed cost lines.

You can update, add, or delete the landed cost lines as long as the RFQ negotiation is not acknowledged. Updates to the last RFQ Negotiation landed costs are synchronized with the landed costs of the RFQ Response.

When copying an RFQ negotiation line, the landed costs of both the response and the counter proposal are copied.

Note

In the RFQ Negotiations (tdpur1606m000) and RFQ Negotiations (tdpur1109m000) sessions, you can view the bidder landed costs and the third party landed costs separately. Only the bidder landed costs are negotiable.

Maintaining landed costs for RFQs

If a search field on the RFQ bidder, RFQ response, or RFQ negotiation is modified, the landed costs can be recalculated. The Recalculate Landed Costs field in the Landed Costs Parameters (tclct0100m000) session is used to determine the recalculation process.

You can use the Landed Cost Lines by RFQ Bidder (tclct2100m600) session to manually change, add, cancel, or delete landed cost lines for an RFQ Bidder, RFQ Response, or RFQ Negotiation.

You cannot change, cancel, delete, or add landed cost lines if:

  • RFQ Bidder
    An Accepted, Processed, or Rejected response exists for the RFQ Bidder.
  • RFQ Response
    The response status is Accepted, Processed, or Rejected, or an RFQ negotiation exists for the RFQ Response.
  • RFQ Negotiation
    The RFQ negotiation is acknowledged.

If you change or cancel landed cost lines in the Landed Cost Lines by RFQ Bidder (tclct2100m600) session, and you click Apply to all on the appropriate menu, the changes made to the line are applied to all other lines of the RFQ with the same combination of Landed Costs Code, Landed Cost Type, and Buy-from Business Partner. If a new landed cost line is added, you can add this landed cost line to the existing lines of the RFQ for which the landed cost line is not yet linked and for which the combination of Landed Costs Code, Landed Cost Type, and Buy-from Business Partner does not exist.

Comparing RFQ responses

Click Compare on the appropriate menu of the Request for Quotation Lines (tdpur1502m000), RFQ Bidders (tdpur1505m000), or RFQ Responses (tdpur1506m000) sessions to compare response lines in the RFQ Compare Responses (tdpur1600m100) session. The response lines must have the status Responded, Negotiating or Accepted.

You can perform a comparison based on:

  • Criteria set
  • Prices
  • Criteria set grouped by bidder
  • Prices grouped by bidder

For all comparisons, the landed costs can be considered.

Converting RFQ responses

You can convert a response line to a purchase order, purchase contract, or price book.

The landed costs are converted only if the response line is converted to a purchase order. Landed costs are not linked to purchase contracts and price books, which means the landed costs are ignored during conversion.

If the Apply Landed Costs check box is selected for the RFQ header, a response line's landed costs are copied to the resulting purchase order. If this check box is selected, but the response line does not have linked landed costs, LN does not retrieve landed costs for the purchase order. If this check box is cleared, the landed costs are not copied from the response line, but are defaulted from the landed costs master data for the purchase order.

When converting a response line's landed costs to a purchase order, no distinction is made between bidder and third party landed costs for the purchase order. Therefore, if you do not want to copy the third party landed costs, you must delete or cancel these costs on the response before converting the response line to the purchase order.

Related topics