Vendor selection is an important process in the procurement cycle.

Once requirements
are gathered, we start looking for possible suppliers who can fulfill the requirements at
the best possible price. So, a request is made to the vendors to submit their quotations
indicating the price of the material along with their terms and conditions. This request is
known as the request for quotation (RFQ). Listed below are the key points to note
about a request for quotation −
 Request for quotation is a form of invitation that is sent to the vendors to
submit a quotation indicating their pricing and terms and conditions.
 It contains details about goods or services, quantity, date of delivery, and date of
bid on which it is to be submitted.
 Quotation is a reply by a vendor in response to a request for quotation.
An RFQ can be created by the following two ways −

1. Manually
2. Automatically from Purchase Requisition

Manual Creation of RFQ

An RFQ can be created manually by following the steps given below −

Path to Create RFQ

Logistics ⇒ Materials Management ⇒ Purchasing ⇒ RFQ/Quotation ⇒ Request for
Quotation ⇒ Create
TCode: ME41
Step 1 − On the SAP Menu screen, select the Create execute icon by following the
above path.
Step 2 − Fill in all the required details such as type of RFQ (if standard, then AN),
language, date of RFQ, purchasing organization, and group.
Step 3 − Provide the name of the material, quantity of material, material group, a
nd quotation deadline date.
Step 4 − Provide the quantity and delivery date for the material.
Step 5 − Provide the vendor address (street number, city, country, pin code) to
which you are addressing the RFQ. Click on Save. A new Request for Quotation
will be created.
Automatic Creation of RFQ from Purchase Requisition
RFQ can also be created with reference to purchase requisition by following the steps
given below −
Step 1 − On the home screen of RFQ, select Reference to PReq tab.

Step 2 − Enter the requisition number for which you want to create an RFQ. Click on
Save. A new Request for Quotation will be created with reference to Purchase
Requisition.
 SAP MM – Define Document Types for
RFQ/ Quotation

How to define document types for RFQ in SAP

In the activity you define document types for RFQ (Request For Quotation) as the
SAP system management RFQ as document. You can group RFQ into any
number of document types in SAP.
Note : – The definition of document type for RFQ is similar to configuration
of document types for purchase requisition.
Document controls the following functions:
 Item number range interval
 Defines allows item categories
 Links Purchase requisition- document type
 Field selections
You can define document types for RFQ by the following navigation method.

Transaction
SPRO
Code

IMG > Material Management > Purchasing > RFQ/ Quotation > Define
SAP IMG Path
document types

Configuration steps
Perform the following configuration steps to define document types for RFQ in
SAP MM.
Step 1 :– Execute T-code “SPRO” in command field from SAP easy access
screen.
Step 2 : – Choose SAP Reference IMG” from customizing execute project
screen.
Step 3 : – From display Img screen, follow the navigation path Material
Management – Purchasing – RFQ/ Quotation and choose IMG activity “Define
document types”
Step 4 : – On document type request for quotation change, you can choose copy
as function or new entries function for creation new document types for RFQ.
Click on new button.
Step 6 : – On new entries of document type screen, update the following details.
 Type : – Update the two digits key that defines as document types for RFQ
 Doc. Type Description: – Update the descriptive text of RFQ document type.
 Itmlnt: – Update the item interval for RFQ, if the item interval is 10 then the RFQ line
item starts with 10, 20, 30… and so on.
 NoRgeInt : – Assign the internal number range interval for RFQ document type.
 NoRge Ext : – Assign the external number range interval for RFQ document type.
 Field Selection : – Update the field selection key for the new document type from the list
(Press function key F4 for list).

Step 7 : – Choose the document type AB and double click on allowed item
categories.

Step 8 : – On Admissible item categories for document type AB request for GP

Bid screen, choose new entries button to define new item categories.
Step 9 : – On new entries item categories screen, choose item category from the
list as per requirements and press enter.

Step 10 : – Now choose the standard item category and double click on “link
purchase requisition – document type”
Step 11 : – On change view “link purchase requisition – document type”
overview screen, choose new entries button.

Step 12 : – On new entries screen, maintain the required purchasing document

type and save the configured details.

After maintaining all the required details for RFQ document type, choose save
icon and save configured details.

SAP MM – Define Screen Layout

At Document Level for RFQ
How to define screen layout at document level for RFQ
In this activity you define screen layout at document level for RFQ (Request For
Quotation) in SAP. For purchasing documents and purchase requisition, you
need to update the input attributes of fields using field selection key.
The definition of screen layout at document configuration method is same
as screen layout at document level for PR.
You can maintain screen layout at document level for request for quotation by
using the following navigation method.

Transaction
SPRO
Code

IMG > Material Management > Purchasing > Request for Quotation > Define
SAP IMG Path
screen layout at document level.

Configuration steps
Perform the following configuration steps for defining the screen layout at
document level for RFQ.
Step 1 : – Execute t-code “SPRO” in SAP command field as shown below image.

Step 2 : – Choose “SAP Reference IMG” from execute project screen.

Step 3 : – Follow the navigation path: Material Management – Purchasing –
Request for Quotation and choose img activity define screen layout at
document level.

Step 4 : – On change view “Screen layout: RFQ/ Quotation” overview screen,

choose standard field selection “ANA” and click on copy as icon.
Step 5 : – On change view “screen layout RFQ/ Quotation details of selected set”
rename the field selection group from ANA to new key and description as per the
requirements of project. After you update the details, press enter to continue.

Step 6 : – Now double click on newly created field selection group key.
Step 7 : – On Maintain Table T162: Field selection groups, choose the required
field selection group to update the required details.

Step 8 : – After you choose the field selection group, make the required change
for required entry, optional entry and display.
Similarly make the changes for other field selection group and save the
configured details.

SAP MM – Maintain Quotation

Comments in SAP
how to maintain quotation comments in SAP using transaction code OMES.

How to maintain quotation comments in SAP

In this activity you maintain quotation comments in SAP for internal comments
related to quotations. The comments help to note in the detailed information on a
quotation the action that you have taken against a quotation.
Navigation
You can maintain quotation comments in SAP by using one of the following
navigation method.

Transaction
OMES
code

IMG > Material Management > Purchasing > RFQ/Quotation > Maintain
SAP IMG Path
Quotation Comments.

Configuration steps
Perform the following configuration steps for maintaining the quotation comments
in SAP.
Step 1 : – Execute t-code “OMES” in command field from SAP easy access
screen.

Step 2 : – On change view “Int comments on quotation” overview screen, click on

new entries button for maintaining the new quotation comments in SAP.

Step 3 : – On new entries quotation comments screen, update the following

details.
 Quotation Comment : – Enter the code that identifies as comments for quotation in SAP.
 Internal comment: Descr.text : – Update the descriptive text of quotation internal
comment.
  After maintaining all the required details, choose save icon and save the
configured details.

SAP MM – Define Texts for RFQ/

Quotations in SAP

How to define Texts for RFQ/ Quotations in SAP

In this activity you define Texts for RFQ/ Quotations in SAP to display text in the
document header. The definition of text type is a cross client object. It involves
the following configuration steps
1. Define text types for header texts
2. Define text types for item texts
Navigation
You can define text types for item texts in SAP by using one of the navigation
method.

Transaction
SPRO
code

IMG > Material Management > Purchasing > RFQ/Quotation > Texts for RFQ/
SAP IMG Path
Quotations

Define text types for header text

Configuration steps

Perform the following configuration steps for defining the text types for item texts
in SAP.
Step 1 : – Execute t-code “SPRO” in command field from SAP easy access.

Step 2 : – Choose “SAP Reference IMG” from customizing execute project

screen.

Step 3 : – From display img screen, follow the navigation path Material
Management – Purchasing -RFQ/Quotation – Texts for RFQ/ Quotations and
choose img activity “define text types for header texts”.
Step 4 : – On maintain text types : header text RFQ/ Quotation screen, choose
new entries button for maintaining new header texts in SAP.

Step 5 : – On new entries header texts for RFQ/ quotation maintain the following
details.
 Seq. No : – Enter the sequence number for header texts RFQ/ quotation.
 Meaning : – Enter the description of header text of RFQ.

Choose save icon and save the configured details.

Maintain Quotation
The following step guides you to maintain quotation in SAP step by step.Vendor
communicates price for material and the Request for Quotation(RFQ) needs to be
updated in SAP.

Step 1: – Access the transaction using one of the following navigation options

SAP R/3 path: – Logistics > Materials Management > Purchasing> RFQ/quotation >
Quotation > Maintain
Transaction Code: -ME47
Step 2: – On the Maintain Quotation: Initial Screen, enter the RFQ and press enter to
continue

Step 3: – Select line item to enter the details quantity and date, update vendor
details

After updating all the mandatory fields, choose save button to save the
quotation.

Successfully quotation are maintained in SAP.

How to Compare Price for Different Quotation: SAP ME49

After your quotations are entered, you can compare them to select the best available offer at this
moment. We can compare the quotations in transaction code ME49.
We can select which quotations will be compared by using the collective number we addressed
before to be an important field that is maintained on RFQ (or directly on the quotation).
If we forget to enter the collective number, we will have to supply all the quotation numbers in
the selection field “Quotation”.
Step 1) In transaction ME49, Enter
1. Purchasing organization (e.g. 0001).
2. Collective RFQ (we have used 190123).
1. The collective number enables you to track all RFQs for a given competitive
bidding process.
2. The number can be alphanumeric and up to 10 characters long.
3. You enter it in the header data of the RFQ.
3. Execute the transaction.

The comparison list looks like this:

From the list we can see that Vendor1 have proposed a better price.
What we need to do is check the effective price (with discounts, freight cost and other
conditions).We will go back to the selection screen and we will tick three check boxes.
Step 2)
1. Check all the boxes in the Price Calculations section.
2. Execute the transaction.
Our results have changed significantly.
Now Vendor2 has the better price, and price of Vendor1 has gone up 256 EUR because of freight
cost.
Now we can conclude that our Vendor2 has the best price, and we can proceed with the process.

If you select Mean value quotation and Minimum value quotation on the previous screen, you will get the
result as they are shown below on the screen.
1. Average price on all the quotations.
2. Minimum price for all the quotations.

After comparing the prices/conditions, you can decide which offers to accept and which
ones to reject.

YOY SAVINGS
SAVINGS Vs Market
ME41 Create Request For Quotation

ME42 Change Request For Quotation

ME43 Display Request For Quotation

ME44 Maintain RFQ Supplement

ME45 Release RFQ

ME47 Create Quotation

ME48 Display Quotation

ME49 Price Comparison List