Request for Quotation

A Request for Quotation (RFQ) is a procurement document that invites one or more vendors to submit quotations for products or services required by an organization. It enables procurement teams to compare vendor responses, evaluate pricing and commercial terms, obtain the necessary approvals, and select the most suitable vendor before generating a Purchase Order (PO).

Within Purchase Management, the RFQ module serves as the bridge between procurement requests and purchase execution. After identifying procurement requirements, users create an RFQ, invite vendors to participate, collect quotations, compare vendor responses, complete the approval process, and generate Purchase Orders for the selected vendors. Throughout the lifecycle, the module maintains communication history, attachments, approvals, and activity logs to provide complete traceability and auditability.

How does it work?

The Request for Quotation process begins by creating an RFQ and defining the required products or services, vendors, and commercial details. The RFQ is then shared with the selected vendors, who submit their quotations before the specified due date. Procurement teams review the received quotations, compare vendor pricing and terms, evaluate technical and commercial requirements, and select the appropriate vendor or vendors.

Once the quotation is approved, the system generates one or more Purchase Orders based on the awarded vendors. Throughout the process, the RFQ workflow tracks each stage of the procurement lifecycle while maintaining communication history, approvals, attachments, and activity records.

The RFQ module integrates with the following Purchase Management modules:

• Purchase Requisition (PR): [SS2] Procurement requirements captured in Purchase Requisitions can be used to initiate the RFQ process.

• Vendor Management: Vendors selected in the RFQ are retrieved from the configured vendor records.

• Workflow Management: Controls RFQ statuses, transitions, approvals, and publishing of the RFQ workflow.

• Field Configuration (RBAC): Determines field visibility, edit permissions, mandatory fields, and access based on user roles.

• Custom Fields: Allows organizations to extend RFQ forms with business-specific information.

• Purchase Order (PO): Approved vendor quotations are converted into one or more Purchase Orders for procurement execution.

Lifecycle

The following table describes the default lifecycle of a Request for Quotation.

Lifecycle | Workflow Stages

State / Status	Workflow Stage	Description / Example
Draft	Creation	The RFQ is created and saved with the required procurement details. Users can modify the RFQ before communicating it to vendors. Example: An RFQ for purchasing office laptops is created and saved as a draft.
Sent to Vendor	Execution	The RFQ is sent to one or more selected vendors, inviting them to submit quotations before the due date. Example: The RFQ is emailed to three approved hardware vendors.
Pending Vendor Response	Execution	The system is waiting for vendors to respond with their quotations. Procurement users can monitor pending vendor responses during this stage. Example: Two invited vendors have not yet submitted their quotations.
Quotation Received	Execution	One or more vendors have submitted their quotations successfully. The quotations are available for review and comparison. Example: Three vendors submit pricing, delivery schedules, and commercial terms.
Under Evaluation	Execution	Procurement teams evaluate the received quotations based on pricing, technical specifications, delivery timelines, and commercial conditions. Example: Vendor quotations are compared to identify the most suitable supplier.
Negotiation in Progress	Execution	Procurement users negotiate pricing, payment terms, delivery schedules, or other commercial conditions with vendors before finalizing the quotation. Example: The procurement team requests a revised quotation with a discounted unit price.
Waiting for Quotation Approval	Approval	The selected quotation is submitted for approval according to the configured RFQ workflow. Example: The Procurement Manager reviews the recommended vendor before approving the quotation.
Approved	Approval	The quotation has been approved and is ready for Purchase Order creation. Example: The selected vendor quotation is approved for procurement.
PO Created	Closure	One or more Purchase Orders are generated for the approved vendor(s), completing the procurement selection process. Example: Separate Purchase Orders are generated for two vendors supplying different line items.
Closed	Closure	The RFQ lifecycle is complete, and all procurement activities associated with the RFQ have been finalized. Example: The RFQ is automatically closed after successful Purchase Order generation.
Rejected	Approval	The quotation or RFQ is rejected during the approval process, preventing Purchase Order creation until corrective action is taken. Example: The quotation is rejected because it exceeds the approved procurement budget.
Cancelled	Closure	The RFQ is canceled before completion due to changes in procurement requirements or business decisions. Example: The procurement request is withdrawn because the requested items are no longer required.

What you see on the screen

The Request for Quotation page displays all RFQs created in the organization. From this page, you can search, filter, create, view, edit, and manage RFQs. It also provides access to line-item column configuration and displays key information, including the RFQ ID, title, requester, required date, priority, total amount, location, and current status.

Label	Action	Description / Example
Search	Enter a keyword to locate an RFQ.	Searches RFQs using values such as the RFQ ID, title, requester, or other searchable fields. Example: Enter RFQ0097 or Laptop Procurement to locate a specific RFQ.
Filter	Click the Filter icon to apply one or more filters.	Filters the RFQ list based on configured criteria such as Status, Requested By, Supplier, Priority, Location, or custom fields. Multiple filters can be applied simultaneously and cleared when no longer required.
Date Filter	Select a predefined date range from the drop-down list.	Displays RFQs created within the selected time period. Available options include Last 60 Days, Last 90 Days, Last 180 Days, and Last 365 Days.
Actions	Click Actions to access additional page-level options.	Select Line Item Column Selection to configure the columns displayed for RFQ line items in the Add, Edit, and View pages.
Add Request for Quotation	Click + Add Request for Quotation.	Opens the New Request for Quotation wizard, allowing you to create a new RFQ by entering the quotation details, adding line items, selecting vendors, and configuring terms and conditions.
Action Icons
Edit	Edit an existing RFQ.	Opens the selected RFQ in edit mode, allowing authorized users to update the RFQ details based on the current workflow stage and assigned permissions.
Delete	Delete an existing RFQ.	Removes the selected RFQ from the system after confirmation. This action is available only to users with the required permissions and for RFQs that satisfy the configured workflow rules.