Topic overview

The purchasing functionality fulfills the task of optimally providing a company with the material and non-material goods it requires as primary material for production, for internal use, or for commercial resale. In this context, the term “optimal” refers to the availability of the proper goods in the proper quantity at the proper time and at the proper location, if applicable. The purchasing functionality ensures this by selecting the optimal supplier, among other things.

Soliciting of quotations from possible suppliers plays a central role in this process. The first step for this is to create an RFQ and transmit it to the potential suppliers. Quotations are then normally submitted in response to RFQs (or calls for bids) before the specified quotation deadline.

The system-aided comparison of supplier quotations received is described below. This comparison makes available information in the individual quotations that are relevant for decision-making in a well-organized format. In addition, any deviations from the RFQ triggering the quotations are highlighted visually. In this way, selection of the proper quotation and, thus, the supplier is supported.

This document describes how the supplier quotation comparison is structured and how it is carried out. It also deals with possible further processing of the quotations, e.g. into an order.

For instructions on working with this application, see the article Procedures: Compare supplier quotations.

You can find an overview of the various ERP processes involved in the quotation comparison in the article Introduction: Purchasing.

Definition of terms

Purchasing RFQ

A purchasing RFQ is a RFQ for a quotation addressed to one or more suppliers. A purchasing RFQ usually contains information about the item, quantity, delivery date, delivery address, and quotation deadline.

Supplier quotation

A supplier quotation is an quotation made by a supplier for RFQed items. A supplier quotation contains information about the item, price, quantity, delivery date, terms of payment and delivery, and the delivery address. A limit can be placed on a quotation by specifying a binding period. Supplier quotations can be referenced to purchasing RFQs in the system and therefore be part of a voucher references chain.

Purchase order

A purchase order is a RFQ to a supplier to perform services or deliver goods at a specified time. A purchase order may contain information about the item, price, quantity, delivery date, terms of payment and delivery, and the delivery address. Purchase orders can be referenced to supplier quotations in the system and therefore be part of a voucher references chain.

Application description

You can use the Compare supplier quotations application to query which supplier quotations have been received in response to a specific purchasing RFQ and which are still pending. The RFQ can be directed at any number of RFQ recipients (1:n). This means that any number of quotations can be connected with the RFQ and displayed with their data in the supplier quotation comparison.

In this process, the most important information in the RFQ and all quotations connected to it is juxtaposed and can be compared at a glance. The terms, prices (taking into account any discounts granted), quotation quantities, and delivery dates of the individual suppliers are compared.

Within the quotation comparison, complete quotations of a supplier or individual line items can be selected for transfer to a purchase order. Purchase orders are then generated for this data.

The supplier quotation comparison is structured as follows:

• The purchasing RFQ is selected in the RFQ field in the query pane. In addition, the header information for the purchasing RFQ is also displayed in this pane.
• All quotations of suppliers connected to the current RFQ are displayed in the work pane. If desired, suppliers whose quotation has not yet been submitted can be included.
• Below that, the line items of the various quotations are compared with the line items of the RFQ. For this purpose, all purchasing RFQ line items and supplier quotation line items are listed – sorted by purchasing RFQ line item, supplier, supplier quotation type, supplier quotation, and supplier quotation line item, and grouped using the most important information. Any discount in kind line items are displayed below the associated quotation line items.  Deviations between an RFQ line item and supplier quotation line item, as well as any unRFQed services, are highlighted clearly.
• Note that the line item data of the quotations, such as the quantities and prices, has been normalized consistent with the RFQ or the other quotation line items to facilitate comparison. The [Original quotation data] button allows you to display the saved quotation line item data.

Query pane

In the query pane, select a purchasing RFQ in the RFQ field. When the RFQ is opened, the quotation comparison starts immediately.

The meaning of the fields is described in detail below

• RFQ – in the RFQ field, select the unique identification of the purchasing RFQ that is to be the object of the supplier quotation comparison. It consists of two entries: the purchasing RFQ type in the first input field and the purchasing RFQ number in the second input field.
  • RFQ type – select an available purchasing RFQ type to identify the purchasing RFQ for which you want to compare received quotations
  • RFQ number – the purchasing RFQ number selected here, together with the purchasing RFQ type, is used to identify the purchasing RFQ you wish to compare
• Status – the status information for the current purchasing RFQ is displayed. For more information on the statuses, see the Purchasing RFQs article.
• Delivery term – the delivery term as defined in the purchasing RFQ header is displayed
• Shipping term – the shipping term as defined in the purchasing RFQ header is displayed
• Payment term – the payment term as defined in the purchasing RFQ header is displayed
• Payment method – the payment method as defined in the purchasing RFQ header is displayed

Work pane

Following selection of the RFQ, use the [Refresh] button to display the quotations received in response to the RFQ along with their line items in the work pane.

Comparison of header data

All supplier quotations linked to the purchasing RFQ are listed. In addition to the identification of the quotations, the list includes the supplier, various terms, and the status information for the quotations. For each supplier who has submitted a quotation in response to the RFQ, the associated header quotation data is displayed in one line each.

The following basic data is displayed for the quotations. It cannot be edited, except for the checkboxes that are used to select a complete quotation for creating a purchase order. The data originates from the supplier quotations and can be changed there if necessary.

• Quotation – this field contains the identification of the supplier quotation. The identification is made up of the type and number.
• Supplier – the supplier of the supplier quotation is displayed
• Delivery term – the delivery term of the received supplier quotation is displayed
• Shipping terms – the shipping terms of the received supplier quotation are displayed
• Payment terms – the payment terms of the received supplier quotation are displayed
• Payment method – the payment method of the received supplier quotation is displayed
• Status – the status of the received supplier quotation is displayed. For more information on the statuses, see the Supplier quotations article.
• Selection (checkbox) – this checkbox can be used to select a complete supplier quotation with all its line items. The [Generate purchase order] button in the standard toolbar can then be used to generate a purchase order from this quotation.

If the conditions of the quotations differ from those of the RFQ, the differing content is marked in red.

You can use the [Pending quotations] button to display the suppliers from whom quotations are still pending. In this case, only the supplier number is displayed and the selection field is not available.

Comparison of line items

The comparison of header information for the quotations and suppliers is followed by the comparison of the requested items and quoted items. All RFQ line items are listed for this purpose. The list is sorted by RFQ line item and consists of one line each per RFQ line item containing the most important data for that RFQ line item.

For each RFQ line item, all quotation line items linked with this RFQ line item are presented in multiple lines underneath. If the units of measure and/or price dimension or price unit deviate between the RFQ line item and the quotation line item or among the quotation line items of the various suppliers, the data is normalized using the same unit of measure and price dimension. This enables the data to be directly compared. If you want to see the saved line item data for the quotations, you can display it using the [Original quotation data] button.

Comparison of displayed RFQ line item data

The following data for each purchasing RFQ line item is displayed in the list in one line each. The data is taken mostly from the purchasing RFQ and cannot be changed here. If required, these data can still be changed in the Purchasing RFQs application. To facilitate comparison, the system converts the quantity and the target cost price, if necessary, and displays the converted values instead of the original values of the RFQ line item.

• RFQ line item – the line item number of the RFQ line item is displayed
• Item – the item as defined in the RFQ line item is displayed. For pseudo items, the item description, which may differ from the master data, is displayed according to the RFQ line item.
• Requested quantity – the quantity as defined in the RFQ line item is displayed

• Preferred date – the preferred date as defined in the RFQ line item is displayed
• Price dimension – the price dimension as defined in the RFQ line item is displayed
• Target cost price – the target cost price as defined in the RFQ line item is displayed.
• Status – the status information for the RFQ line item is displayed

Comparison of displayed quotation line item data

The data of the quotation line items associated with each RFQ line item is grouped by supplier in two lines below the data of each RFQ line item.

If you have activated the [Original quotation data] button, two additional lines are displayed for each quotation line item. For more details on this, see the chapter Original quotation data.

Any existing discounts in kind are displayed below the associated quotation line item.

The data mainly originates from the supplier quotation line item and cannot be changed in the list. If necessary, it can be changed in the Supplier quotations application. The deviation in percent is calculated and displayed by the system. The system converts the quantities and prices, if necessary, and displays them differently than in the vouchers.

The following data is displayed for each quotation line item in the first line:

• Quotation line item – the line item number of the quotation line item is displayed
• Supplier – if the system has found a quotation line item matching the RFQ line item, the supplier from the supplier quotation is displayed here
• Quoted quantity – the quantity as defined in the quotation line item is displayed. If the quoted quantity differs from the requested quantity, this value is highlighted in red.

• Gross price – the gross price as defined in the quotation item is displayed

• Gross amount – the gross amount as defined in the quotation item is displayed
• Cash purchase value – the cash purchase value as defined in the quotation line item is displayed
• Cost price – the cost price as defined in the quotation item is displayed

• Status – the status information for the quotation line item is displayed
• Selection (checkbox) – you can use this checkbox to select the [Generate purchase order] action for the quotation line item

The following data is displayed for each quotation line item in the second line:

• Item – the item as defined in the quotation line item is displayed. For pseudo items, the item description, which may differ from the master data, is displayed according to the RFQ line item.
  If the quoted item differs from the requested item or if a pseudo item has a different item description in the RFQ line item and quotation line item, this value is highlighted in red.
• Kit deviation – when kit line items are compared, deviations between the sub-items can occur with respect to the item and quantity. If this occurs, an icon is displayed here. The associated tool tip text states which item quantities are missing and which were unexpectedly included in the quotation.

• Delivery date – the delivery date as defined in the quotation line item is displayed.
  If the delivery date differs from the preferred date of the RFQ line item, this value is highlighted in red.
• Net amount – the net amount as defined in the quotation line item is displayed
• Cost value – the cost value as defined in the quotation line item is displayed
• Deviation in % – the deviation in percent is determined by the system and displayed here. The deviation in percent refers to the difference between the cost price of the quotation line item and the target cost price of the RFQ line item, provided one was named in the RFQ.
  If no target cost price is entered in the RFQ line item, a deviation is not determined. The percentage displayed is then always “0%”.
  If the percentage is positive, this value is highlighted in red.

Original quotation data

If the [Original quotation data] button is activated, two additional lines are displayed below the comparison lines of the quotation line items. These are particularly useful if the quantities or prices have been normalized for the comparison.

These two lines contain the following information:

• Item – the item is displayed as it was entered in the quotation line item.
• Quoted quantity – the quantity is displayed as it was entered in the quotation line item
• Gross price – the gross price is displayed as it was entered or determined in the quotation line item.
  The value is based on the price unit and price dimension of the quotation line item.
• Price dimension – the price unit and the price dimension as defined in the quotation line item are displayed
• Cost price – the cost price is displayed as it was calculated in the quotation line item.
  The value is based on the price unit and price dimension of the quotation line item.
• No base discounts – the No base discounts property as defined in the quotation line item is displayed
• Base discount 1 to 4 – discounts 1 to 4 of the quotation header are displayed
• Discount 1 to 4 – discounts 1 to 4 of the quotation line item are displayed

Discounts in kind displayed for each quotation line item

If available, discounts in kind are displayed below the data of the associated quotation line item.

The following data is displayed for each discount in kind:

• Quotation line item – sub-item number of the discount in kind in the supplier quotation
• Discount item – the item of the discount in kind line item
• Quantity – the quantity of the discount in kind line item
• Status – the status of the discount in kind line item

Customizing

The settings in the Customizing application are not relevant for the Compare supplier quotations application.

Business entities

The following business entities are relevant to the Compare supplier quotations application. They are used, for example, to perform one of the following:

• Assign authorizations
• Set up activity definitions
• Import or export data

Purchasing RFQ: com.cisag.app.purchasing.obj.RFQForProposal

Supplier quotation: com.cisag.app.purchasing.obj.SupplierProposal

The business entities belong to the following business entity group: com.cisag.app.purchasing.OrderData

Authorizations

Authorizations can be assigned by means of authorization roles as well as by assigning an organization. The authorization concept is described in the technical article Authorizations.

Special capabilities

The Compare supplier quotations application has no special capabilities.

Organizational assignments

Organizational structures are used to control which data can be viewed, used, or edited. The Content-based authorizations function must be activated in the Customizing application for this purpose.

To enable a person to see and open the Compare supplier quotations application in the user menu, they must be assigned to an organization that is integrated into one of the following organizational structures:

• Purchasing

To enable a person to compare supplier quotations, one of their assigned organizations must be entered in the Authorizations table in the Purchasing RFQ types and Supplier quotation types applications.

For more information on the Authorizations table and a comprehensive overview of content-based authorizations, see the article Content-based authorizations.

Special features

The Compare supplier quotations application has no special features.

Authorizations for business partners

The Compare supplier quotations application is not released for business partners.

Application-related actions

Two processing steps are possible in the Compare supplier quotations application:

• You can query which supplier quotations have been received in response to a purchasing RFQ. These are displayed with their terms and information for the individual line items so that you can compare them.
• Then, you can select individual quotation line items or a complete supplier quotation. The [Generate purchase orders] action allows you to generate purchase orders from this data.

For instructions on working with the Compare supplier quotations application, see the document Procedures: Compare supplier quotations.

Displaying supplier quotations for a purchasing RFQ

The Compare supplier quotations application is a query application and is thus not intended to be used to enter and process vouchers. For this reason, all data is only displayed and cannot be changed. The data mainly originates from the purchasing RFQ or the supplier quotation. It can be changed there if necessary. Some of the displayed values and units are calculated or converted by the system. Based on the comparison of the quoted line items and the requested line items, you can decide which items you want to order from which supplier.

Preconditions

A purchasing RFQ has been entered. In order to compare quotations received for in response to a purchasing RFQ, supplier quotations connected with the RFQ via a voucher reference must be available. For this purpose, the supplier quotations must either have been generated from the RFQ or the voucher reference must have been entered manually in the quotation header and in the quotation line items. If no quotation is connected with the RFQ for a supplier or if you are not authorized to display the quotations, these quotations are treated as pending quotations.

[Generate purchase orders] action

The [Generate purchase orders] action is available in the Compare supplier quotations application.

This action allows you to generate purchase orders from selected individual quotation line items or from a complete supplier quotation.

Preconditions

The comparison of supplier quotations for a purchasing RFQ has been initiated and at least one quotation line item is displayed as a result.

To generate purchase orders, only quotation line items that are released and not yet ordered in full can be selected. The associated quotation header in each case must be released. The current date must be within the validity range of the quotation.

Dialog window

Provided the preconditions are met, a dialog window is displayed when the [Generate purchase orders] action is executed. You can specify the following there:

• Type – in this field, enter the purchase order type to be used when the purchase orders are generated
• Confirm warnings automatically – you can use this checkbox to force warnings that may occur during purchase order generation to be confirmed automatically

Effects

The system uses the following procedure to generate the purchase order:

• For each quotation header, a purchase order is generated using the selected line items for the supplier specified in the quotation header. The purchase order type specified in the dialog window is used for this.
• All data is thereby transferred from the quotation to the order, provided the data has been entered. The data is applied for each line item and can thus differ in each line item, if this is permitted in the order.
• If data is still missing, it is filled in the purchase order with default values, if applicable. This can be data from the partner or item master data or from the purchase order type, for example.

The purchase orders generated are processed further in the Purchase orders application.

For more information, see the Purchase orders article.