What is request for quotation (RFQ) in sap?

The request for quotation (RFQ) is an invitation to a vendor to indicate his terms and conditions (in particular, his price) for the supply of a material or the provision of a service by submitting a quotation. As in the case of the purchase requisition, the RFQ identifies the material, quantity, and delivery date. In addition, the RFQ contains information about the vendor to whom the request for quotation (RFQ) is sent (for example, the vendor’s name and address) and important dates for the RFQ (such as the closing date for applications, or pre-qualification date, and bid submission deadlines). RFQs can be subject to a release procedure.

Structure of an RFQ in SAP

The request for quotation is organized as other purchasing documents. The header contains general information about the RFQ, such as the vendor address. Each item identifies the individual materials for which a price is required from the vendor. One main difference between request for quotation (RFQs) and other purchasing document types is the fact that you cannot enter account assignments for RFQ items.

To Create RFQ in SAP use the Transaction code: ME41

Below the screenshot of initial screen,

request for quotation (RFQ)

What is a quotation in SAP?

The quotation contains the vendor’s pricing and conditions for providing the material or service stated in the RFQ. In SAP MM Purchasing, the request for quotation and quotation are the same document. You enter the vendor’s pricing and conditions in the original RFQ.

Then you can find the below points

  • To use the price comparison list to help you determine the best quotation.
  • To send rejection letters to the appropriate vendors.
  • To store the pricing and terms of delivery for certain quotations in the info record for future reference.

Processing of request for quotation (RFQs) and Quotations.

  • You do the following when processing sap request for quotation RFQs and quotations:
  • You create an RFQ manually or by referencing a requisition.
  • You specify which vendors will receive the request for quotation. A separate document is created for each addressee.
  • You enter the prices and conditions from the vendor’s quotation into the request for quotation RFQ.
  • You can monitor the status of the request for quotation and quotation as it is further processed (that is, following creation of a contract or purchase order).

Also See: Configuration of Sales Document Types

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