Advices

In case of any new material or services or in some cases for existing material/services being requisitioned, multiple enquiries are floated by the purchase dept with concerned suppliers for quotation.

Request to suppliers is send either by Fax, E-mail, Verbal/Phone to submit price quotation for the specified quantity, terms & conditions, delivery schedule for the materials & services.

Business Requirements

Request for quotations shall be created through SAP standard system, with reference to approved purchase requisitions or in general.

Different RFQs shall be prepared through SAP standard system and send to various vendors for the quotations

The RFQ shall contain the total quantity required, name & address of the vendor, valid date and the predefined terms and conditions.

Suggested Business Process

A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a quotation (bid) for the supply of materials or performance of services.

An RFQ consists of the RFQ header and the items.

•

Contains general information on the RFQ, such as the vendor’s address

•

Contain the total quantities and delivery dates for the materials or services specified in the RFQ.

You use this component if you wish to manage and compare requests for quotation (RFQs) issued to vendors and the quotations submitted by the latter in response to them.

Gaps: A

4.3.4 Sub-Process Scope: Quotation AS-IS Business Process

At Kajaria Ceramics, upon receipt of quotes from various suppliers, a comparative statement is prepared in excel, based on the conditions like price, taxes, duties, Freight, discount, credit days, timely delivery, reliability, service , etc . Total cost to the company is calculated and then evaluation is carried out for the best option to find a right vendor for procurement of materials.

Depending on the value the Quotation undergoes the approval process and then Quotation is finalization.

The most suitable quote is finalised for further process.

Suggested Business Process

A quotation is an offer by a vendor to a purchasing organization regarding the supply of materials or performance of services subject to specified conditions.

The RFQ and the quotation form is a single document. Prices and conditions quoted by vendors are entered in the original RFQ. If you have issued an RFQ to several vendors, you can have the system determine the most favourable quotation submitted and automatically generate letters of rejection to the unsuccessful bidders. You can also store the prices and terms of delivery from certain quotations in an info record for future accessing.

A quotation is legally binding on the vendor for a certain period. The quotation is the vendor’s response to a request for quotation

Business Requirements:

The comparison statement or list shall be generated through SAP standard system.

The price comparison list can be prepared based on either average or minimum value of all the obtained quotations for various vendors by providing collective number.

The RFQ’S should undergo the approval process as per the SAP system for all the purchase.

issued by a purchasing organization.

A quotation consists of items in which the total quantity and delivery date of an offered material or service are specified. An item of a quotation may contain a delivery schedule made up of a number of schedule lines in which the total quantity is broken down into smaller quantities to be delivered on the specified dates over a certain period.

An item of the procurement type External service contains a set of service specifications. The latter can be hierarchically structured. The summary view of such a hierarchical structure is referred to as an outline. The outline comprises a number of levels, each representing a level of the service hierarchy. The quantities of the quotation are set out in service lines, representing individual jobs or activities

You can compare the prices from all quotations received as a result of a competitive bidding process using the price comparison list . The comparison list ranks the quotations by item from lowest to highest price.

Prerequisites

Before you generate the price comparison list, you need to consider the following:

If possible, each quotation should have pricing data for the same item. Only then is the correct interpretation of the mean and total values possible.

If quotations 1 and 2 have pricing data for item 1, but quotation 3 only has price information for item 2, then the system does not have enough information to accurately compare the prices of all three quotations.

If a quotation is submitted in a foreign currency, the price is automatically translated into the currency of the company code, which is determined by your purchasing organization.

You should therefore make certain that up-to-date exchange rates are defined in your system.

You can compare the quotations within the list with a sample quotation. The system displays the percentage deviation between each quotation in the list and the sample quotation.

Mean/minimum value quotation

The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations. Select either the Mean or Minimum value quotation field to choose the type of fictitious quotation.

Percentage basis

The price comparison list displays the percentage of each item in relation to the maximum, minimum, or average price. To determine the display type, enter one of the following:

– “+” Highest value for each item is the 100% value – “-“ Lowest value for each item is the 100% value – +"_" Mean value for each item is the 100% value Price Computations

Select the appropriate field to specify which of the following should be taken into account in determining the comparison price:

– Cash discount – Delivery costs – Effective price Gaps:

A

The existing RPO document will not be brought into SAP system. The Purchase Order document will be used as direct document.