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Picture Description

This flowchart illustrates the Request for Quotation (RFQ) process, which is a key step in the procurement cycle within the SAP Materials Management (MM) module. The process involves the following steps:

  • Need for Procurement:
    • The process begins when there is a requirement for materials or goods.
    • This need triggers the procurement process.
  • Request Quotations from Vendors:
    • The buyer initiates the RFQ process by requesting quotations from potential vendors.
    • The goal is to gather competitive quotes for the required materials.
  • Print RFQs:
    • The system generates and prints the Request for Quotation (RFQ) documents.
    • These documents contain details about the materials needed and are sent to the vendors.
  • Quotations from Vendors:
    • Vendors respond by submitting their quotations in response to the RFQ.
    • Each vendor provides pricing, delivery terms, and other relevant information.
  • Buyer’s Evaluation:
    • The buyer receives and evaluates the quotations.
    • Factors considered include price, quality, delivery time, and vendor reputation.
  • Compare Quotations:
    • The buyer compares the different quotations received.
    • The goal is to select the most suitable vendor based on the evaluation criteria.
  • Decision Point: Accept or Reject:
    • If a vendor’s quotation meets the requirements and is acceptable, the buyer proceeds to the next steps.
    • If a quotation is not suitable (e.g., too expensive or inadequate), it is rejected.
  • Accept Quote:
    • If the quotation is accepted, the buyer confirms the selection.
    • The chosen vendor’s quotation becomes the basis for further processing.
  • Maintain Source List:
    • The system updates the source list, ensuring that the chosen vendor is recognized for future procurement.
  • Create PO Quotation (Purchase Order):
    • Based on the accepted quotation, the system generates a Purchase Order (PO).
    • The PO specifies the materials, quantities, and terms agreed upon.
  • Procurement:
    • The materials are procured from the selected vendor.
    • The entire process ensures efficient and cost-effective material acquisition.

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