Evaluate Purchase Quotations and Print Analysis

Outcome

The replies from the suppliers are analyzed and the system automatically calculates which item is the cheapest.

The following files are updated:

Purchase Quotation current price (MPPQTC)
Purchase Quotation new price (MPPQTCN)

The evaluated Request for Quotation is used as a reference for the purchase agreement with the supplier in 'Purchase Agreement. Open' (PPS100).

Before you start

An RFQ number must be defined in 'Request for Quotation. Open' (PPS130). See Create Request for Purchase Quotation.

Follow These Steps

Start 'Request for Quotation. Open' (PPS130).
On the B panel, select the request for quotation number to be evaluated and select option 11 = Details. 'Request for Quotation. Open Lines' (PPS133) is displayed.
Entering price for the supplier (if sorting order 2 is used). More detailed information is displayed on the E panel.

An asterisk (*) in the Table field indicates that a price table is connected in (PPS134).
Select the item number to update price (if sorting order 1 is used).

Define a Price Table with different Prices for different Quantities

You can define a price table with varying prices for different quantities. Prices vary depending on the quantity bought.

Select option 11=Prices. 'Request for Quotation. Enter Prices' (PPS134) is displayed.
On the B panel, enter the From quantity, New Purchase price, Discount 3, Normal price, and Current purchase price.
- Note: The columns to the left displays new prices/discounts and the columns to the right display current prices/discounts.
- One of these prices must be marked as the 'Normal price'. In the Npr column the normal price is marked as 1. This price is used as the representative price for this item in calculations.
- Data from some of these fields is automatically retrieved during mass creation of purchase quotation.
Press Next to save data.
Press F3. PPS133/B panel is redisplayed.

When reporting is complete, the status is 50=Received and values updated.

Calculate the Total Purchase Cost of the Item

On the PPS130/B panel, select option 37 = 'Costing Cal'. 'Purchase Inquiry Costing. Calculate' (PPS292) is displayed.
On the E panel, enter the Request for Quotation number(s) for costing calculation.

The calculation gives the total purchase cost of the item, including the cost elements specified in the purchase cost model. For example, freight, internal distribution cost, etc.
Press Enter to submit job.
Press F3 twice. PPS130/B panel is redisplayed.
Select option 31 = 'Cal priority'. 'Request for Quotation. Calc Priority' (PPS580) is displayed.
On the E panel, specify the Priority code.

The valid alternatives are:

0 = Do not assign a priority

1 = New net price

2 = New cost price

3 = New purchase price
The analysis is best viewed in 'Supplier Quotation. Analyze' (PPS140). You can also use option 12= 'Quotation analyze' in (PPS130).

Print Analysis

The analysis can be printed in 'Supplier Quotation. Print Analysis' (PPS555). You can also use option 34= 'Print' in (PPS130).

Negotiate Price

Start 'Supplier Quotation. Negotiate About Prices' (PPS145). You can also use option 13 = 'Price negotate' in (PPS130).
On the B panel enter, the Price, Annual demand, New Purchase price and discount 3 can be modified.

The effect of an increase or decrease on demand, price and/or discount can be simulated in the program
Press F14 = Save data.

You can use F17 = 'Reset data' if you want to start all over again,
The Price list table can be reached using option 11 = 'Quot Price'.

New Purchase price and Discount 3 are displayed.
The Analysis can be reached using option 12 = 'Quot Analysis'

The priority can be changed for different items based on the updated price.

Print Negotiation

Price negotiation document can be printed using 'Supplier Quotation. Print Negotiation Report' (PPS565). You can also use option 36 = 'Negotiatn List' in (PPS130).