Request for Quotation (RFQ)
Create and send quotation requests to vendors to gather pricing and purchase condition information
Request for Quotation (RFQ) is the first step in the procurement process, allowing you to send quotation requests to vendors to gather information about pricing, delivery conditions and payment terms before officially placing an order.
RFQs can be sent via email, track response status and easily convert to purchase orders once agreed with the vendor.
Create New RFQ
Go to Purchase → Orders → Requests for Quotation and click New to create a new RFQ.
Steps
1. Select Vendor - system automatically fills contact information
2. Fill Order Deadline - when order needs to be finalized
3. Select Currency if different from default currency
4. Select Payment Terms
5. Select Buyer (person responsible for purchasing)
6. Fill Incoterm if international transaction
7. Click Save to save RFQ
RFQ Header Information
Important Fields
| Field | Required | Description |
|---|---|---|
| Vendor | Yes | Vendor receiving RFQ |
| Order Deadline | No | Order deadline / when order needs finalization |
| Currency | Yes | Order currency (default from company) |
| Payment Terms | No | Payment terms (e.g., 30 days) |
| Buyer | No | Person responsible for purchasing |
| Incoterm | No | International trade terms (FOB, CIF...) |
| Fiscal Position | No | Tax position (for automatic tax calculation) |
Add Products to RFQ
In Order Lines section, click Add a line to add products:
Steps
1. Select Product - search and select product to purchase
2. Enter Quantity - quantity to order
3. Select Unit - unit of measure (automatic from product)
4. Enter Unit Price - unit price (can leave blank if unknown)
5. Select Taxes - applicable taxes (automatic from product)
6. Fill Expected Arrival - expected receipt date
7. Add Description if detailed description needed
Line Types in RFQ
Line Types
| Type | Purpose |
|---|---|
| Product | Product/service line to purchase |
| Section | Group header to categorize products |
| Note | Notes, instructions for vendor |
Send RFQ to Vendor
After completing RFQ information, send to vendor to receive quotation:
Steps
1. Review vendor and product information
2. Click Send by Email button
3. Review email template - can edit content
4. Click Send to send email
5. Order status changes to RFQ Sent
6. Vendor receives email with link to view RFQ on portal
Merge Multiple RFQs
If there are multiple RFQs with same vendor, currency and suitable conditions, can merge to optimize:
Steps
1. Select multiple RFQs in list (checkbox)
2. Go to Action menu → Merge RFQs
3. System checks merge conditions (same vendor, currency, destination)
4. Confirm merge - creates new RFQ containing all order lines
5. Old RFQs are automatically cancelled
Track RFQ
RFQ Status
| Status | Meaning | Next Action |
|---|---|---|
| Draft | RFQ being drafted | Complete information and send |
| RFQ Sent | Sent to vendor | Wait for vendor response |
| RFQ | Not sent | Send or continue editing |
Update Prices from Vendor
When receiving response from vendor, update information in RFQ:
Steps
1. Open sent RFQ
2. Update Unit Price for each product line
3. Update Expected Arrival if vendor proposes different date
4. Update Payment Terms if there are changes
5. Add notes in Chatter about special conditions
6. Save changes
Compare Quotes from Multiple Vendors
To compare prices from multiple vendors for same product:
Steps
1. Create separate RFQ for each vendor with same products
2. Send RFQ to all vendors
3. Update prices when receiving responses
4. Use Purchase Analysis to compare
5. Or export to Excel for manual comparison
6. Select best vendor and confirm that RFQ
7. Cancel remaining RFQs
Additional Information in RFQ
Other Information tab contains additional information:
Key points
• Delivery Address: Delivery address (default from company)
• Analytic Distribution: Cost allocation by project/department
• Notes: Internal notes not visible to vendor
• Terms and Conditions: Purchase terms and conditions
Handle Rejected RFQ
When vendor rejects or does not respond:
Steps
1. Note rejection reason in Chatter
2. Click Cancel to cancel RFQ
3. Create new RFQ with different vendor
4. Or adjust conditions and resend
Tips for Effective RFQ Use
Steps
1. Create RFQ templates for frequently purchased products
2. Use Section to group products by category
3. Add Note with special requirements for vendor
4. Set reasonable Order Deadline for vendor response time
5. Clearly specify Expected Arrival so vendor knows delivery requirements
6. Use Chatter to keep history of vendor communication
7. Attach technical documents if needed in Attachments
Convert RFQ to Purchase Order
When price and conditions are agreed with vendor:
Steps
1. Review all information: price, quantity, delivery date
2. Click Confirm Order
3. RFQ converts to Purchase Order
4. If approval process exists, order moves to To Approve
5. If not, order moves directly to Purchase Order