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Author's profile photo Shiv Kumar Mandowara

Request for Quotation Process in SAP S/4 Hana

A. Introduction

The purpose of this blog post is to provide a detailed view of the newly introduced Request for Quotation(RFQ) end to end process in S/4 HANA along with screen shots of relevant Fiori apps. This blog post will help the SAP PTP Consultants in visualizing the end-to-end process flow of RFQ process using Fiori apps.

RFQ is a form of invitation that is sent to the suppliers to submit a quotation indicating their pricing and terms & conditions. It contains details about goods or services, quantity, date of delivery, date of bid etc.

In response to the RFQ, suppliers provide quotations, buyer can compare these quotations and award the order to the competitive and suitable quotation.

B. Business Benefits

  • Send RFQ to multiple suppliers
  • Promotes competitive pricing
  • Side by side price comparison
  • Reduce the time needed to evaluate proposals from qualified bidders with qualified responses.

C. Key Process Flow

  • Create a RFQ and submit it to corresponding suppliers
  • Receive the supplier’s proposals and create supplier quotations
  • Compare and award the corresponding quotations
  • Create follow-on documents
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Manage RFQs (F2049)

User can use this app to create RFQ’s in SAP S/4 HANA. Below are the key features of this app.

  • Create a RFQ
  • Search for an existing RFQ
  • Display a list of already existing RFQ’s
  • Copy an existing RFQ and modify it according to the requirement
  • Publish the RFQ and send it to suppliers.
  • View the detailed information of the received quotations
  • Create, edit and display additional information to suppliers in the form of texts in the Notes
  • Display the History of the RFQ to keep track of the document changes.
  • Display the process flow to see the steps that were already performed in the procurement process.
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1. Click on Create option and select Int. Sourcing Req. to, create RFQ.

2. Provide following details in General Information section.

3. Provide following details in Delivery and Payment Terms section.

4. Provide following details in Items section after clicking on Create option.

5. Select Get Bidder Proposals (System Generated) or Create (To add new suppliers) option to add suppliers to whom RFQ to be send.

6. Provide require text in Notes section.

7. Check Approval Details in highlighted section and click on Create to save RFQ.

8. After clicking on Create button RFQ will be created in In-Preparation status, click on Publish button to send RFQ for Approval.

 

9. RFQ will be approved automatically as it has been maintained as Automatic Approval by default.

10. Provide RFQ number to search RFQ for which supplier quotation to be created.

11. Select Supplier and click on Create Quotation in Bidders section.

12. Provide following details in General Information section.

13. Provide Net Order Price and other details in Item section, click on Create to create the quotation. Submit it for further processing.

 

14. User can see Supplier Quotation in Quotations section.

 

Compare Supplier Quotations (F2324)

User can do following tasks with this app.

  • Search for a specific RFQ
  • Display all received quotations for this RFQ and check whether all invited suppliers have already sent their quotations or not
  • Get an overview of the Basic supplier data, Total net value etc.
  • Check best-priced items.
  • Compare supplier quotations
  • Award the best quotation

1. Search RFQ, select supplier quotations and click on Compare.

2. Check the best price and click on Select All and Save the quotation.

 

3. Select finalized quotation and click on Award.

 

Manage Supplier Quotations (F1991)

User can use this app to display all supplier quotations which has been received for different RFQ’s. User can view the details information for each quotation. Below are the key features of Manage Supplier Quotations app.

  • Display the list of all quotations
  • Search for a particular quotation
  • Display detailed information for a quotation by selecting the corresponding line
  • Submit quotations that are in status In-Preparation.
  • Edit quotations that are in status In-Preparation or in status Submitted.
  • Delete quotations that are in status In-Preparation.
  • Award Quotations
  • Create a Follow-on document

1. Search specific RFQ to see supplier quotations created for this, user can also see status of each quotation. Select the Awarded quotation and create a follow on document for it.

2. Select Follow-on document as Create Purchase Order, to create purchase order with reference to quotation.

 

3. Check all the data and click on Create, to create purchase order.

4. Purchase Order has been generated as below.

 

5. User can see document flow in Process Flow section as below.

 

Reference Link – https://rapid.sap.com/bp/#/browse/categories/sap_s%254hana/areas/on-premise/packageversions/BP_OP_ENTPR/S4HANA/2021/US/8/EN/scopeitems/1XF

D. Conclusion:

This article will make it easier for consultant who are looking for the understanding and visualization of newly introduced end to end RFQ process via Fiori apps.

Call-to-action: Please provide your feedback/comments/thoughts in the comments section, which will help me to learn more from you and encourage me to improve the content in any of the future blog posts. Please do follow the tags and my profile for getting notifications related to any new blog posts.

Additionally, you can also post your questions in the tagged Q&A community to get the answers from the experts of the community.

Link – Ask a Question | SAP Community

 

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      14 Comments
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      Author's profile photo Saurabh Nigade
      Saurabh Nigade

      Great Work...!

      Author's profile photo Leon Cornelio
      Leon Cornelio

      Is there a way to reject an item from a list of items.

      If we create an RFQ with 10 items and supplier sends a quotation for 8 items.. System is still asking price of the other 2 items.

      Author's profile photo Shiv Kumar Mandowara
      Shiv Kumar Mandowara
      Blog Post Author

      Hello Leon,

      Yes, we can reject the items which are not awarded to a particular supplier and award it to different supplier, ex. If we have 5 items in RFQ and 3 items awarded to first supplier and 2 items awarded to second supplier. In that case price needs to provided for all the line items but for different suppliers.

      Regards

      Shiv

      Author's profile photo Pooja Divyanshi
      Pooja Divyanshi

      Hello,

      Very helpful and informative blog.

      Question: Is there a standard workflow for approval process available in the RFQ simplified transaction functionality, similar to the ones we have for PR and PO approvals?

      Thanks!

      Author's profile photo Shiv Kumar Mandowara
      Shiv Kumar Mandowara
      Blog Post Author

      Hello Pooja,

      Yes, it is available. You can refer below SAP link for the same.

      Manage Workflows for RFQs - SAP Help Portal

      Regards

      Shiv

      Author's profile photo Sandip shankariya
      Sandip shankariya

      Hi,

      How to reject non awarded quotation and update info automatically.

      Author's profile photo Sanjeev Kumar
      Sanjeev Kumar

      Hi, What is the relevance of the "legal transactions" tab in RFQ

      Author's profile photo Shiv Kumar Mandowara
      Shiv Kumar Mandowara
      Blog Post Author

      Hello Sanjeev,

      Legal Transaction tab is available in RFQ so that users can link related legal documents to the RFQ's. This is require when business wants to have all the information related to transaction stored in one place for easy access and reference.

      This tab is directly linked with Legal Content Management module of SAP. You can refer to scope item 1XV to know more on LCM side.

      https://rapid.sap.com/bp/scopeitems/1XV

      Regards

      Shiv

      Author's profile photo insaf ben belaid
      insaf ben belaid

      Hi!

      Thank you so much for This post.

      While creating the Follow on document "Purchase contract" from the quotation, we face this error :

       

      Item category not defined (please check your input)


      Diagnosis

      The item category you entered has not been defined in the system.

      Procedure

      Check your input.

      If the problem cannot be resolved in this way, contact your system administrator.

      Message no. ME016


      Author's profile photo Alexander Haas
      Alexander Haas

      Hi Insaf,

      you have to define follow-on documents in customizing (RFQ document type -> contract document type)

      Best

      Alex

      Author's profile photo Peter Neu
      Peter Neu

      I recently was told (then checked and confirmed) that you can EITHER use Fiori Apps based process as described OR the old GUI process. RfQs created via App will not be displayed in GUI and vice versa. 

      Author's profile photo Shiv Kumar Mandowara
      Shiv Kumar Mandowara
      Blog Post Author

      Correct Peter.

      Author's profile photo Sky Sun
      Sky Sun

      Very helpful and good blog!

      Does these functions already sunset in OP2022?  like ME41 - 49.

       

       

      Author's profile photo David Medlik
      David Medlik

      Hi,

       

      it is very good material.

      I have one question - is there a way how to reject not awarded Supplier quotation? I think it was already asked but still without answer. Actually i was testing it and it was possible to award all Supplier quotations - but guess it should not be possible.

       

      Regards

      David