Request for Quotations

You use the Request for Quotations application to create requests for quotations and to store the quotations. Based on the quotations, you can assess the vendor who best meets your needs.

A Request for Quotations is a request that you send out to one or more potential vendors. To list a vendor on the Request for Quotations, the vendor must have a record in the Companies application. In the Request for Quotations application, you can specify line items, required delivery dates, and other conditions that you want the vendor to meet for the delivery of an item or a service.

You can create an Request for Quotations for any of the following conditions:

• The stock count of an item drops below a certain level, and you must place another bulk order.
• A requisition is received for an item or for a service that requires a quotation each time because of item price or other requirements.
• Someone at your site requests a quote for an item or for a service. It can be for a stocked item or for a non-stocked item, such as a special order.
• You need to do commodity bulk buying for a certain period of time. This is typically for many items with common commodity codes. The quotation might not be copied to a purchase order immediately, but the pricing is set.

When you receive the quotations from the vendors, you insert them into the Request for Quotations record one line at a time. At the end of the process, you review the quotations and award one quotation for each line. The quotations are then converted to one or more purchase orders or contracts, depending on the procurement flow within your organization.