Request for quotation mandatory for a purchase order?

(0) Share

Report

Posted on by DNC

Hello folks,

I have a question regarding the option Request for quotation. Is it mandatory to use the Request for quotation option if you want to post a purchase requisition and then, create from an approved purchase requisition a purchase order?

Because in my opinion it is not, but I heard from colleagues other opinions regarding this question. I could not find material regarding this question which says that you have to use it. So I guess it is not mandatory? Below you find the option which I am talking about.

Best regards
DNC

I have the same question (0)

All responses (4)

Answers (2)

Verified answer

SouravDam 11,730 on at

Like (0)

Report

Hi DNC,

RFQ is not mandatory.

However, you need to understand why RFQ is available in system and what purpose it serves and at what stage it is used.

When the purchase department receives or create PR and they know from which vendor they are going to procure it, then they will simply select that vendor directly in the PR line. Approve the PR and release PO from that PR.

But if the purchase team wants to receive quotation for the same item or procurement category from different vendors available in the market to get a best / suitable quote, then you can opt for RFQ. And with RFQ, you may also go through vendor collaboration (for vendor bid process) as well to compare the bid prices from different vendors in order to select the appropriate vendor. And once you chose / accept the vendor in RFQ (after bidding is completed in vendor collaboration), system will update that vendor automatically in the PR line provided that you have created that RFQ from the PR.

Rest of the processes are same. PR is to be approved and a new PO can be automatically generated from that approved PR or can be released manually depending on what purchasing policy you set in the system.

Hope it clarifies!

Regards,
Sourav

Was this reply helpful? Yes No
Verified answer

saurabh bharti 15,039 Moderator on at

Like (0)

Report

Adding to that,

Here is one process end to end which can help :

exploredynamics365.home.blog/.../

Was this reply helpful? Yes No
Suggested answer

SouravDam 11,730 on at

Like (0)

Report

Hi DNC,

Is any further clarification is required on this, let us know please.

Regards,
Sourav

Was this reply helpful? Yes No
DNC on at

Like (0)

Report

Thanks, now I understand the process better. I could also reproduce the case from Saurabh Barathi. He provided a link above for this process.

Was this reply helpful? Yes No