Purchasing:

Purchase Requests and

Quotations
SAP Business One
Version 10.0

PUBLIC

Welcome to the purchase requests and purchase quotations.

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 Objectives

At the end of this topic, you will be able to:

• Create purchase requests and purchase quotations

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In this topic, we will explore how to create and work with purchase
requests and purchase quotations. We will use the purchase quotation
generation wizard to produce multiple quotations.
 Business Scenario

▪ Your company has added purchase requests and purchase quotations as

part of the normal purchasing process.

▪ When employees want to order supplies, they use a purchase request to

alert the purchasing department about their needs.

▪ If none of these items are available in-house, the purchasing department will
purchase the items.

▪ To get the best price, a buyer will ask vendors to provide quotes for items.
When multiple quotes are needed, the purchase quotation generation wizard
is used.

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Your company has added purchase requests and purchase quotations as

part of the normal purchasing process.
When employees want to order supplies, they use a purchase request to
alert the purchasing department about their needs.
If none of these items are available in-house, the purchasing department
will buy the items.
To get the best price, a buyer will ask vendors to provide quotes for
items. When multiple quotes are needed, the purchase quotation
generation wizard is used.

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 Process Overview

Purchase Purchase Purchase Goods Outgoing

A\P Invoice
Request Quotations Order Receipt PO Payment

▪ Purchase requests can be used as a preliminary step in the purchasing process.

▪ Once a request is made, the item can be ordered directly on a purchase order
or vendors can be requested to provide quotations.

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A purchase request can be used as a preliminary step in the purchasing

process. Purchase Requests are used internally to indicate a need for
an item.
Once a request is made, the item can be ordered directly or vendors can
be requested to provide quotations.
The purchase quotation document allows you to track vendor quotations
for items.
There are several ways to create purchase quotations. Single quotations
can be created manually or from a purchase requisition. The purchase
quotation wizard can be used to create multiple quotations. From the
purchase request report, you can create online quotations directly from
the report by marking a checkbox. Quotations can also be created
directly from sales orders using the procurement confirmation wizard.
After vendors reply to the quotations, you can compare the responses to
determine the best offer, then create a purchase order for that vendor.

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 Purchase Request

Purchase Purchase Purchase Goods Outgoing

A\P Invoice
Request Quotations Order Receipt PO Payment

▪ A purchase request is generally a document generated by a user to notify the purchasing

department of items or services needed.
▪ The document specifies quantities, and a timeframe for the requested items.
▪ It may also contain authorization information to proceed with the purchase.

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Now let us take a detailed look at the purchase request.

A Purchase Request is generally a document generated by a user to
notify the purchasing department of items or services needed. The
document specifies quantities, and a timeframe for the requested items.
It may also contain authorization information to proceed with the
purchase.
Purchase requests are also known as purchase requisitions.
It is also a request to make a purchase using company funds. Some
companies require a purchase requisition for all purchases and others
only require them for certain types of purchases.

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 Benefits

Purchase Request

Requester User manager No. 101 ▪ Saves time because

Requester Name Jayson Butler Status Open document provides
Branch Main Posting Date 02.02.X information needed for
purchase orders
Department General Valid Until 03.03.X
Send E-Mail if PO or GRPO is added Doc. Date 02.02.X ▪ Reduces expenses related
E-Mail [email protected] Required Date 03.02.X to returned items.
▪ Allows you to track
Contents Attachments
expenses in advance
▪ Helps with budget planning
# Item No. Required Date Required Qty. Info Price Total
and cost reduction
1 Z00001 03.02.X 20 700 14000

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Using purchase requests can save time for the purchasing department,
because the document provides much of the information they need to
create purchase orders.
Additionally, purchase requests reduce expenses related to items
returned because they were not what the requester expected or items
which a supervisor did not approve.
Purchase requests allow a company to track expenses in advance of a
purchase. They help a department maintain a budget. They also allow a
company to see which departments or employees are spending more
than others, thereby helping with budget planning or cost reductions.

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 Target Documents

Purchase Purchase Quotation Purchase Order …

Request or

Purchase Order …
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A purchase request can be copied to a purchase quotation in order to

find the best price or the purchase request can be copied directly to a
purchase order if the vendor is known.

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 Purchase Request Report

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Another option is to open the purchase request report to view existing

purchase requests and to create the follow-up documents directly from
the report.
The purchase request report provides an overview of all the purchase
request items with corresponding information.

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 Purchase Request Report

PurchasePurchase
Request Report
Request
# Selected Item Code Vendor Code PR No. Online Quotation
View existing purchase requests and
1 X Report
Z00001 create the follow-up documents
2 X Z00001 V10000 101 X directly from the report
3 X Z00002
4 X Z00002 V10000 102 X
5 X ZK0013
Purchase
6 X ZK0013 V20000 102 X Quotation
Create
Purchase Quotations
Purchase Orders

Purchase Order

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As shown in the graphic, you can select rows in the report, then use the
Create button dropdown list to create either quotations or orders.
Inside the report, it is possible to make changes, such as vendors or
quantities, as needed before creating quotations or purchase orders from
the report.
One advantage of the report is that you can group purchase requests by
vendor so that instead of creating multiple purchase orders for each
vendor, you can create just one per vendor.
A notification can be sent via email or within SAP Business One when a
purchase order or goods receipt PO is created for a purchase request.

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 Purchase Request Scenario

Purchase Purchase Purchase Goods Outgoing

A\P Invoice Payment
Request Quotations Order Receipt PO

▪ Sales team needs 2 tablets.

▪ Management approval is required.
▪ Purchase request is saved as a draft.
▪ Once approved, the draft is converted to purchase request
▪ The buyer runs purchase request report.
▪ Since item is not in stock, the buyer creates a purchase order.

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In our business example, the sales team needs two tablets for a sales
road show. The sales manager requests the tablets using a purchase
request.
Because the items are expensive, management approval is required. The
purchase request is saved as a draft as part of the approval procedure.
Once the item is approved, the draft can be converted to a purchase
request.
The buyer runs the purchase request report and sees the pending
request. The tablets are an item that is normally provided by a regularly-
used vendor. The buyer checks if the item is currently in stock.
Since the item is not in stock, the buyer creates a purchase order.
From that point on, the purchasing process continues as usual with a
goods receipt PO to receive the items and an A/P invoice to record the
amount that is owed to the vendor.

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 Purchase Quotation

Purchase Purchase Purchase Goods Outgoing

A\P Invoice Payment
Request Quotations Order Receipt PO

▪ The purchase quotation requests pricing and delivery information from your vendor in advance of the
purchase order.
▪ You can create a purchase quotation, send the document to your vendor and when you receive
information from the vendor on prices and delivery dates you can enter this information in the purchase
quotation
▪ The information tracked in the quotation enables you to pick the right vendor.
▪ Using quotations helps to reduce costs, improve quality and increase on-time delivery.

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Now we will look at how we use purchase quotations in the purchasing

process.
The purchase quotation is the document for requesting pricing and
delivery information from your vendor in advance of the purchase order.
You can create a purchase quotation, send the document to your vendor
and when you receive information from the vendor on prices and delivery
dates you can enter this information in the purchase quotation. In this
way, you can store the complete history of the sourcing process in the
system.
The information tracked in the quotation enables you to pick the right
vendor for the purchase.
Using quotations helps to reduce costs, improve quality and increase on-
time delivery.

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 Purchase Quotation Generation

Purchase Quotation
Generation Wizard
▪ Often items are sourced from multiple vendors
▪ The purchase quotation generation wizard simplifies
the process for multiple quotes.

Purchase Purchase Purchase

▪ You can create several purchase quotations for many
Quotation 1 Quotation 2 Quotation n items and many vendors.
▪ You can update each quotation with relevant data from
Get data from the vendor.
vendors
▪ A purchase quotation report allows you to compare
Update Update Update offers to pick the optimal vendor for your purchase.
PQ 1 PQ 2 PQ n ▪ Then you can create the purchase order from the
selected quotation.
Pick optimal
vendor
Create Purchase Order

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Often, items are sourced from multiple vendors before a purchase is

made.
The purchase quotation generation wizard simplifies the process when
multiple quotations are needed.
You can create several purchase quotations for many items and many
vendors in a single process.
When you receive the vendor data, you can update each quotation with
the relevant information.
A purchase quotation report allows you to compare offers to pick the
optimal vendor for your purchase scenario.
Then you can create the purchase order from the selected quotation.

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 Preferred Vendors

The item master allows you to specify

multiple preferred vendors for each item.

The quotation generation wizard chooses

the preferred vendors to create quotations.

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The item master allows you to specify multiple preferred vendors for each
item.
When multiple vendors are specified in an item master, the quotation
generation wizard automatically chooses those vendors to create
quotations.

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 Purchase Quotation Scenario

Purchase Purchase Goods Outgoing

A\P Invoice Payment
Quotations Order Receipt PO

▪ Purchase quotations are needed for 2 types of printers

▪ The buyer uses the purchase quotation wizard
▪ The wizard generates 3 purchase quotations for the 2 items
▪ The buyer uses the purchase quotation report to compare quotations.
▪ The buyer creates a purchase order for the items from the best quotation.

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In our purchase quotation business scenario, the buyer decides to

request quotations for two types of printers.
To make the process simpler and quicker, the buyer uses the purchase
quotation wizard.
Since 3 preferred vendors are specified in the item master records, the
wizard generates 3 purchase quotations for the two items.
When the vendors supply the requested quotations, the buyer updates
each quotation.
Then the buyer uses the purchase quotation report to compare
quotations. One vendor has clearly quoted the best price and conditions.
Therefore, the buyer creates a purchase order for the items from the that
quotation.

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 Summary

Here are some key points:

 Purchase requests enable employees to initiate a purchase by submitting their needs
for certain goods and services.
 The purchase request can be copied to a purchase quotation or purchase order
for further processing.
 A purchase quotation allows you to request quotes from your vendors then track
the answers.
 You can compare quotations to determine the best offer and create a purchase order.
 The purchase quotation generation wizard allows you to generate multiple purchase
quotations for vendors and items.
 The wizard uses the preferred vendors listed in the item master to generate quotations.

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Purchase requests enable employees to initiate a purchase by submitting

their needs for certain goods and services.
The purchase request can be copied to a purchase quotation or purchase
order for further processing.
A purchase quotation allows you to request quotes from your vendors
then track the answers.
You can compare quotations to determine the best offer and create a
purchase order.
The purchase quotation generation wizard allows you to generate
multiple purchase quotations for vendors and items.
The wizard uses the preferred vendors listed in the item master to
generate quotations.

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