Supplier Quotation
A Supplier Quotation is a document provided by a supplier that specifies the cost of goods or services they offer within a defined time period.
It may also include payment terms, delivery conditions, taxes, and warranties. Once accepted by the buyer, it can serve as a binding commercial agreement between both parties.
1. Prerequisites
Before creating a Supplier Quotation, ensure the following are set up:
2. How to Create a Supplier Quotation
2.1 From Material Request or RFQ
A Supplier Quotation can be generated from a Material Request or received via a Request for Quotation.
It can also be created directly from the Supplier master or submitted by the supplier through the ERPNext portal.
2.2 Manual Creation
- Go to Buying > Purchasing > Supplier Quotation > New.
- Select the Supplier.
- Contact and address details will be fetched automatically if available in the supplier master.
- Add items with quantity and rate.
- Rates may be auto-fetched if standard buying prices are defined in Item Price.
- Submit the quotation after verification.
Supplier Quotations are especially useful when comparing multiple suppliers for the same item and maintaining procurement history for auditing and analysis.
3. Features
3.1 Taxes and Charges
Additional costs such as taxes, shipping, or insurance can be added to accurately reflect the total landed cost.
These charges can be configured using tax templates.
3.2 Additional Details
Supplier Quotation includes fields such as tax category, shipping rule, discounts, terms and conditions, quotation number, and print settings.
Tax category and contact details are typically fetched from the supplier master, ensuring consistency across transactions.
4. Business Usage
Organizations typically use Supplier Quotations to compare pricing across vendors, ensure competitive procurement, and maintain transparency in sourcing decisions.
While useful, maintaining supplier quotations may not be necessary for small businesses unless dealing with high-value or strategic items.
5. Actions After Submission
- Create a Purchase Order if the quotation is accepted.
- Convert into a Quotation for customer-facing processes.
- Enable Auto Repeat for recurring quotations.
