| # Request for Quotations 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. The created RFQ can be sent to one or a range of bidders based on the approved source list. After receipt of the RFQ responses, the results can be negotiated and compared with objective and subjective criteria based on which a purchasing decision can be made. An accepted RFQ 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. Calculating total scoring values per criterion If you sent RFQs to bidders, you can rank the responses that you get back from the bidders to decide from which bidder you will purchase. Before you can rank the responses, LN must calculate the scoring values for each response. The procedure for calculating the total scoring value for each criterion includes several steps. Ranking RFQ responses RFQ responses are ranked based on the total scoring values for bidders. Additional processes A number of processes do not always occur in the RFQ procedure, but can be used optionally, such as printing RFQ reminders, printing letters for unsuccessful bidders, viewing, printing, and deleting RFQ history. Subcontracted service items In case of operation subcontracting, requests for quotation (RFQs) can include subcontracted service items. These RFQs can be manually specified, or can be generated from a purchase requisition with a linked routing operation or production order. Project pegging To identify costs, demand, and supply for a project, you can peg project costs for RFQ lines. 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. |