MM / P2Pbeginner

MM Request for Quotation Part 1: RFQs, Quotations and Price Comparison

Key takeaway

Get competitive prices before buying: create RFQs to several suppliers, enter their quotations, compare prices, reject losing bids, and turn the winning quotation into a PO, contract or info record — in classic transactions and S/4HANA apps.

Explanation

📌 KEY POINTS
✅ An RFQ asks several suppliers for prices; each supplier gets its own RFQ document (grouped by a collective number).
✅ Quotations are entered into the RFQ documents (prices, conditions, validity).
✅ Price comparison ranks quotations; losing bids can be rejected with output.
✅ The winning quotation becomes the reference for a PO or contract and can update the info record.
⚠️ Comparing gross prices without conditions (freight, discounts) can pick the wrong supplier.

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▶ WHAT THIS SERIES COVERS
Part 1: RFQs, quotations and price comparison
Part 2: RFQ strategy, sourcing integration and award governance

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▶ 1. CREATE RFQ

ME41 (document type AN), deadline, collective number, suppliers.
Or with reference to a PR.

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▶ 2. ENTER QUOTATIONS

ME47: prices, conditions, validity, delivery dates.

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▶ 3. COMPARE

ME49 price comparison by collective number; effective price incl. conditions.

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▶ 4. DECIDE

Reject losing quotations (rejection indicator/output).
Save winning conditions to info record (info update indicator).

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▶ 5. FOLLOW-ON

PO or contract with reference to the quotation.
S/4HANA: Manage RFQs / Manage Supplier Quotations apps (per release).

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▶ STEP BY STEP

Create RFQs for three suppliers.
Enter quotations.
Compare, reject two, create a PO from the winner.

✅ CHECKPOINT: the PO references the winning quotation and the info record has the new price.

Code example

ABAP Code

===== STEP 1: RFQ =====ME41: type AN, deadline, collective no. STEEL-2026 | items: material R-100, 1,000 KG | suppliers 300100, 300200, 300300 ===== STEP 2: quotations and comparison =====ME47: prices 12.00 / 11.80 + freight 0.50 / 12.10 | ME49: comparison by collective number → effective price ranking ===== STEP 3: follow-on =====Reject losers (ME47 rejection + output) | info update flag | ME21N reference to quotation / ME31K contract

Real project scenario

A buyer chose the lowest unit price, but freight and minimum order surcharges made it the most expensive. Entering all conditions in quotations and using the effective price in the comparison changed the award and saved 6% on the category.

Common mistakes

Comparing unit prices only.
Not rejecting losing bids.
Not updating info records.
RFQs without deadlines.
Manual spreadsheets outside SAP.

Best practices

Enter full conditions.
Use effective price comparison.
Reject and inform suppliers.
Update info records.
Keep the sourcing trail in the system.

Interview angle

Questions: "Explain the RFQ process", "How does price comparison work?", "How does a quotation become a PO?"
Strong answer: ME41 per supplier with collective number, ME47 quotations, ME49 comparison with effective price, rejection, info update, reference to PO/contract.

Practice this lesson

Quick check

1. How can the winning quotation price be stored for future POs?

2. How do you configure output management for RFQs to ensure automatic email or print transmission to vendors, and what are the key configuration nodes involved? Choose the response that best aligns with the expected SAP approach.

3. How are RFQs to several suppliers for the same requirement grouped for comparison?

Interview questions

1. How do you configure output management for RFQs to ensure automatic email or print transmission to vendors, and what are the key configuration nodes involved?

Answer it in your own words first, then compare.

2. Describe the process and key considerations when comparing quotations for external services procurement involving complex service specifications.