Requests for Quotation

With the request for quotation (RFQ) procedure, you can send RFQs to bidders for the procurement of goods. On an RFQ, information regarding items, quantities, and required receipt dates can be specified. You can send the RFQ to one or a range of bidders based on the approved source list. After receipt of the RFQ responses, the results can be negotiated, compared, and ranked. An accepted response can be copied to a purchase contract, a purchase order, or a supplier price book.

RFQs can be generated from planned orders, requisitions, or purchase contracts. They can also be manually specified.

• Request for quotation procedure

  The request for quotation (RFQ) procedure includes the creation and communication of the RFQs to the appropriate bidders, and the receipt, negotiation, comparison, and selection of the bidders' responses.

• Specifying criteria and criteria sets for RFQs

  You can compare and rank response lines based on objective and subjective criteria specified for the RFQ criteria set. No criteria set is required if you perform the comparison and ranking only based on prices and amounts.

• Calculating total scores for criteria

  If an RFQ criteria set is used, criteria scores are calculated when comparing the response lines.

• Ranking RFQ responses

  Response lines can be ranked based on the total (citeria) score and the price of the lines. Next, you can select the best responses for conversion.

• Additional processes

  A number of processes do not always occur in the RFQ procedure, but can be used optionally, such as landed costs on RFQs, printing RFQ reminders, printing letters for unsuccessful bidders, viewing, printing, and deleting RFQ history.

• Additional information fields

  You can use additional information fields to specify additional information on RFQs. These fields are used throughout the process. For example, they are used in the project contract, the RFQ, the purchase order, the warehouse order, and the receipt process in Warehousing.

• Operation subcontracting

  In case of operation subcontracting, requests for quotation (RFQs) can include subcontracted service items, or Purchased and Manufactured items with linked material supply information. These RFQs can be manually specified, or can be generated from a purchase requisition with a linked routing operation or production order.

• Service subcontracting

  In case of service subcontracting, RFQs can include Cost or Service items, or Purchased or Manufactured items with linked material supply information. These RFQs can be generated from a purchase requisition with a linked work order or service order.

• Supplier stage payments

  Supplier stage payments enable customers to pay suppliers before or after the ordered goods are actually received for a purchase order. The payments are spread over a period of time and the amounts must be paid to the supplier on specific dates. The purchase order item's invoice flow is separated from its goods flow. On the RFQ response, you can specify the stage payment lines, which can be copied to the purchase order line during conversion.

• Price stages

  You can link a price stage to response lines and negotiation lines. When converting a response line to a purchase order, purchase contract, or price book, the price stage is copied from the response line to the purchase order line, purchase contract price revision, or price book. Purchase order lines can be blocked because of the price stage.

• Material price information

  You can link material price information to response lines. As a result, the (document line) price on the response line includes material prices.

• Project pegging

  To identify costs, demand, and supply for a project, you can peg project costs for RFQ lines.