8.1.2. Requests for Quotation (RfQ)

The request for quotation contains all the details and parameters used by vendors to make an offer. The RfQ window located in the Procurement -> Request for Quotation menu is used to manage requests for quotation. The following fields are available:

• RfQ No - the document number (if not entered manually the system will automatically generate a number);

• Representative - person responsible with entering the request for quotation;

• RfQ Topic - determines the vendors for which RfQ responses are generated and the RfQ print format;

• RfQ Type - determines the RfQ structure and the how responses are completed:

  • Quote Selected Lines - a response is complete if a price is entered for at least one line;

  • Quote All Lines - a response is complete if for each response line a price is entered;

  • Quote Total only - the RfQ lines must contain a single quantity. A response is complete if the total price is entered;

• Quote All Quantities:

  • if checked, a line response is correct if a price is entered for every quantity;

  • if not checked, a line response is correct if a price is entered for at least one quantity;

• Quote Total Amt

  • if checked, responses will be ranked based on total amount;

  • if no checked, responses will be ranked based on line rankings.

• Invited Vendors Only - if checked, the request for quotation is only visible for invited vendors;

• Self Service - if checked the responses can be entered through the Web Store. If not they can only be entered through SocrateCloud.

• Responses Accepted - select if the RfQ responses are accepted;

• Response Date - enter a date until RfQ responses are accepted;

• Work Start, Response Date - define a period for which the quoted products are required;

• Currency - currency used on the RfQ. All responses will need to be completed in this currency;

• Delivery Days - days between the ordered date and the promised date;

A request for quotation will be sent to vendors using Create & Invite button. In the process window check the Send Invitations to Vendor checkbox if you wish to send email invitations. The process will create RfQ responses for every vendor subscribed to the RfQ Topic;

Once created, responses should be updated according to vendor offers using the RfQ Response window.

Rank Responses button - starts the process used to compare Rfq responses:

• After all the responses have been completed, return to the RfQ window to rank them. Press the Rank Responses button;

• For requests of type Quote selected lines, the lines with the best ranking will be marked with the Winner checkbox;

• For requests of type Quote all lines and Quote total only the winning vendor and will have, for it's corresponding response, in the RfQ Response window, the Winner checkbox selected:

  • By default, the winning vendor is determined by adding the ranking for RfQ response lines. The vendor with the best rank will marked as winner;

  • For Rfq Type "Quote Total Only" or RfQ Type "Quote all lines" with Quote Total Amt checked, the winning vendor is the one with the least total amount;

• On the RfQ lines, the Best Response amount value will be updated with the quantity from the winning response;

Business partner (Account) section:

• Customer, Location, Contact - select the business partner, address and contact which will be used on the sales order generated based on the RfQ;

• Margin % - enter a margin used on the sales order. The sales price for the products will determined by adding this margin to Best Response Amount values, only if no Offer Amt and no Margin % are entered for the RfQ detail;

• Sales Order - displays the number of the sales order generated based on the RfQ;

Generate Sales Order button - generates a sales order based on the Rfq:

• the sales order customer is entered in the Business Partner section, above;

• every RfQ Line (Quantity) with the Offer Quantity checkbox marked will generate a sales order line:

  • If an Offer Amt is entered - the price used will be the Offer Amt value;

  • If a Margin % is entered for the line - the price will be the the Margin % added to the Best Response Amount value;

  • If no Offer Amt and no Margin % are entered for the line - the price used will be the Margin % (from the Business partner section) added to the Best Response Amount value;

  • If all the values above are 0 the Best Response Amount Value is used;

• After the process is successfully run the Sales Order field from the RfQ will be updated with the sales order number and date;

• On the generated order, lines can be added or edited.

Generate Purchase Order button - generates one or multiple purchase orders, based on the winning responses:

• The system checks for the response with the Winner checkbox:

  • If a response is found, the response lines and quantities will be used to generate a purchase order;

  • If not, the lines with the Winner checkbox selected will be used to generate purchase orders. This way, multiple purchase orders will be generated, one for each winning line vendor;

• Generated purchase orders will use the prices from the RfQ responses, not the prices from the default vendor price list;

• On the generated order, lines can be added or edited.

Copy Lines button - will copy the lines and quantities from another request for quotation;

Close RfQ button - will close the request for quotation, this way preventing any further editing. After running the process the Processed checkbox will be marked;

The Details tab is used to add products to the request for quotation. The following fields are available:

• Line No - number for the document line through which the display and print order is controlled;

• Product, Attribute Set Instance - select the desired product;

• Work Start, Work Complete - define a period for which the quoted product is required;

• Delivery Days - enter the number of days between date ordered and date promised;

Requests for quotations can be made for different quantities, for the same product. The Quantity tab is used to enter product quantities for which the request for quotation is made:

• UOM, Quantity - enter a unit of measure and a quantity for the product

• Benchmark Price - enter a reference price for the product quantity;

• Best Response Amount - automatically updated by the system after the Rank Responses process is used;

• RfQ Quantity - check if this quantity will be used to generate RfQ responses;

• Purchase Quantity - check if this quantity will be used to generate a purchase order;

• Offer Quantity - check if this quantity will be used to generate a sales order. The following fields will appear:

  • Offer Amount - enter the price used on the sales order line;

  • Margin % - enter a percent value, which added to the Best Response Amount value, will be the price used on the sales order line.