RFQ/Quotation

SAP AG

SAP AG

TAMM10 4.0B

12-1

RFQ/Quotation: Objectives
At the conclusion of this unit, participants will be

able to:
Enter RFQs and quotations for various bidders.
Compare and process the quotations.
Explain the terms, collective number and price

comparison list.

SAP AG

SAP AG

TAMM10 4.0B

12-2

RFQ / Quotation
Purchase
order

Purchasing

Vendor
Vendor A
A
Purchase
requisition

Source
of supply

Request for
quotation

Quotation

Vendor
Vendor B
B

Vendor
Vendor C
C
Rejection

Master data

SAP AG

After establishing that a material or service is required, the Purchasing department needs to convert the
purchase requisition into a purchase order. The SAP R/3 System can support the Purchasing department
using the requests for quotation in the source determination.
First, you enter a request for quotation for the appropriate material or the desired service. You can enter
the request for quotation manually or with reference to a purchase requisition. The second option has the
advantage that the information already in the purchase requisition is adopted directly in the request for
quotation. Then you allocate the desired vendors to the request for quotation. The system determines the
address from the data in the respective vendor master record.
Then you send the requests for quotation to the vendors, who send you quotations. You enter the
quotations and the conditions contained in them for the associated requests for quotation.
You determine the most favorable quotation by means of a quotation comparison.
You also have the option of saving the conditions of quotations in which you are interested as
purchasing info records.

SAP AG

TAMM10 4.0B

12-3

Function Process: Creating RFQs

11 Initial screen
Quotation
deadline
Purch. org.
Purch. group

2
2 Item overview screen

Item detail screen

Material
Quantity
Date

3
3 Vendor address
Vendor
number

Header detail screen

Collective
number

Save

Exit

SAP AG

You can either enter RFQs with or without reference to a purchase requisition, another RFQ or an
outline agreement.
You maintain the organizational levels and the deadline for submission of quotations on the initial
screen.
After you have filled out the initial screen, you enter the items for the RFQ. You can enter an RFQ for
vendors with a master record or for one-time vendors. With a one-time vendor, you must enter the
address in the RFQ.

SAP AG

TAMM10 4.0B

12-4

Collective Number
RFQ campaign = common collective number

RFQ 1

RFQ 2

RFQ 3

Vendor A

Vendor B

Vendor C

Material 1
Material 2
Material 3

Material 1
Material 2

Material 3

Material 1
Material 2

Material 3

SAP AG

You can link a number of RFQs that belong together with the help of the collective number. You enter
the collective number once in the header data of the RFQ and the system then adopts it in all the other
RFQs in your item list. You can then refer to the collective number, for example, when comparing prices
and thus obtain all the associated quotations.
The collective number can have a maximum of ten characters and can be alphanumeric.

SAP AG

TAMM10 4.0B

12-5

Quotation Processing
11

Enter price and conditions

Vendor A
Quotation for
RFQ 1
Item 10
Gross price: 400/t
Discount:
$ 50

22

Vendor B
Quotation for
RFQ 2
Item 10
Gross price: 400/t
Surcharge: 20%

Vendor C
Quotation for
RFQ 3
Item 10
Gross price: 500/t
Fixed costs: $ 40

Compare quotation with price comparison list

Steel 2 t

350/t

480/t

520/t

450/t

Price
Quotation 1 Quotation 2 Quotation 3

33
For example, create info record or reject quotation
Purchase
order

Piece
Piece

Rejection

Mean value
quotation
Market price

%
%

Conditions
Conditions

$$

Info record

SAP AG

The quotation contains a vendors prices and conditions for the materials or services specified in the
RFQ. In the SAP Purchasing component, RFQ and quotation are a single document. You enter the prices
and conditions stated by the vendor in the original RFQ.
You can compare quotation data by using the quotation price comparison list. The quotation price
comparison list shows the most reasonable vendor for each item and for all items.

You can save quotation data in which you are interested in a purchasing info record. The info record can
be generated automatically by setting a valid info update indicator when maintaining quotations.

You can create a purchase order with reference to a quotation.

You can set a rejection indicator on uninteresting quotation items. The system automatically issues a
rejection letter for entire quotations with a rejection indicator.

The mean value of the quotations can be saved as the market price in the quotation price comparison
list. The market price is used as the basis for valuating the price level of a vendor and called up for
vendor evaluation.

SAP AG

TAMM10 4.0B

12-6

Issuing Messages
Purchasing doc.

Output
Printer

Printout

EDI

Delivery
schedule

Expeditor/
Reminder

Fax
Telex
Teletex

Rejection
letter

Order
acknowledgement
expeditor
R

SAP AG

You can issue purchase documents (except requisitions) as messages. Output can be via a printer, fax
machine or EDI, for example.
You can set which header texts and item-based texts the system issues. The header text is printed at the
start of the purchase order and contains generally applicable information. Item texts describe a purchase
order item more precisely. You can also include and issue standard texts.
Note: You will find more detailed information about purchasing document output in the Materials
Management documentation on Purchasing: Entering Texts, Print Functions and Information Transmission.

SAP AG

TAMM10 4.0B

12-7

RFQ/Quotation: Summary
When creating RFQs, the items are entered first and then
assigned to various vendors. This creates several similar
RFQs, which are addressed to different vendors.
To access RFQs that have the same contents more
easily, a collective number should be set in the RFQ
header. Similar RFQs are grouped together.
A quotation contains the bidders prices and conditions
for the items in the RFQ. The quotation is entered as an
update to the RFQ. The RFQ and the quotation are one
document.
You can compare quotation data using a quotation price
comparison list.

SAP AG

SAP AG

TAMM10 4.0B

12-8