WHAT IS RFQ IN SAP MM

RFQ when read in full can be read as Request for quotation. This can be generated in SAP by manipulation of the available features and functionalities in order to establish a binding agreement between the vendor and the buyer of the materials. This service is specifically meant for invitation of the buyers or interested parties to place bids for a product or products available for sale from the primary vendor. In some instances away from SAP application as used in material management, Request for quotations is in some instances referred to as invitation for bid. The seller or the producer uses the SAP application and sends the RFQ to a given number of buyers or interested parties stating the available products and specifications. This may be after an advertisement or primary introduction of a product to the market which may need further specifications of the product.

A request for Quotation has specific parts on the document which must be included to have a complete document with the final information to be delivered. These parts can be specifically being divided into two parts. These are the header and the items. The header is usually found at the top of the document as the name suggests. This is where the general information on identity is found. The information in the header includes the name of the business of the vendor basically. However, others may go extra mile to contain information such as the address of the vendor, telephone contacts, street address, tax registration PIN (Private Identification Number) and even a brief list of some of the items available from the vendor.

After the header part is the items. The items can be considered to be the body of the document. It contains a list of products or even services that are to be delivered or offered and the schedule of offer. The items part lists each product or service on its own. This may further be broken into parts or stages in which they will be offered. Also specified here are the dates of service offer. Some RFQs go a mile a head to specify the time the service will be offered and the if possible the location. However, in such a case, many RFQs will give an approximate duration within which the product may be delivered or offered rather than the exact time. This is preferred by most of service providers who find it convenient and less troublesome when dealing with clients who are far away.

Unlike the manual way of generating RFQs, use of SAP makes it easier, faster and more time saving since the formatting or the paper layout is already saved. The user simply has to enter the desired information which is automatically organized by the application and delivered over the printer in a print form. The user does not have to start reorganization of the outlook. Some of the SAP applications are readily customized with the user’s data hence easy generation of the header information.