Oracle Procurement Process: RFQ's and Quotations

The procurement process generates and manages requests for purchase of goods and services.

Demand: Demand of purchase items may be one-time event or may recur in either predictable or random time intervals.

Source: The procurement sourcing process covers the business activities related to the search, qualification, and selection of suitable suppliers for requested goods and services.

Order: The procurement ordering process includes purchase order placement by the buying organization and purchase order execution by the supplying organization.

Receive: The receipt process acknowledges that a purchase order has been duly executed. For orders of physical goods, it will include the receipt, inspection and delivery of the goods to inventory or to another designated location. For orders of services, it will typically consist of a notification from the requester or the approving person that the service has been performed as agreed.

Pay: The payment process consists of these activities involved in the payment for goods and services.

PO Requisitions


During the life cycle of a requisition, many people can act on the requisition including:

·         Employees

·         Buyers or buyer-planners

·         Approvers

·         Suppliers

·         Purchasing staff

Requisition Structure

Request For Quotation(RFQ) and Quotation

RFQ Life Cycle

Oracle Purchasing provide us the RFQ and Quotation features to handle our sourceing needs. We can create RFQ from requisitions, match supplier quotations to our RFQ, and automatically copy quotation information to purchase orders. Once RFQ created, we can communicate with suppliers via E-Mail, Fax, iSupplier Portal, EDI or XML, Oracle Sourcing.

RFQ Can be created manually or automatically in three types…

Standard RFQ: It is used for procurement of items which will be ordered not very often or once. Here we can get price break where we can bargain for more discounts at different quantity levels.

Catalog RFQ: It is used for procurement of items,here most of the information will be available on supplier catalog and here also we can get price break where we can bargain for more

BID RFQ: It is used for procure items for a specific, fixed quantity, location and shipment date. For example a BID would be used for a large or expensive piece of equipment that you've never ordered before, or for an item that incurs transportation or other special costs. You cannot specify price breaks for a Bid quotation.

A consideration for selecting your type of RFQ is what your ultimate ordering document will be.

The Catalog and Standard RFQs support price breaks and can become Blanket Purchase Agreement through the Quote process.

The Bid RFQ supports a shipment schedule and can become a Standard or Planned purchase order through the Quote process.

Creating RFQ through Manual Process:

Navigation: MCR PO > RFQ’s and Quotations > RFQ

Enter the records and save, once save the records, system will create RFQ number automatically.

Click On Price Breaks to suppliers to get discount based on different quantities.
 
Click on Supplier button to select suppliers to send RFQ. Click on Add Form List button to select supplier list.

Change the status manually from In Progress to Active and Save the record.
 
Run the Printed RFQ Report to take print and sent to Supplier for quotation.
 
RFQ Out put for two suppliers from supplier list.



RFQ’s and Quotations Continuation