Comparing Quotations (SAP Library - Purchasing (MM-PUR))

Comparing Quotations

You can compare the prices from all quotations received as a result of a competitive bidding process using the price comparison list . The comparison list ranks the quotations by item from lowest to highest price.

Prerequisites

Before you generate the price comparison list, you need to consider the following:

If possible, each quotation should have pricing data for the same item. Only then is the correct interpretation of the mean and total values possible.

Example

If quotations 1 and 2 have pricing data for item 1, but quotation 3 only has price information for item 2, then the system does not have enough information to accurately compare the prices of all three quotations.

If a quotation is submitted in a foreign currency, the price is automatically translated into the currency of the company code, which is determined by your purchasing organization.

You should therefore make certain that up-to-date exchange rates are defined in your system.

Procedure

Choose RFQ/quotation ® Quotation ® Price comparison list.

The selection screen for the price comparison list appears.

Enter the selection criteria for the quotations that are to be compared.

You can enter either a range of quotation numbers or, by entering the collective number, select all quotations belonging to a certain competitive bidding process. It is also possible to select by vendor number and by material number. You must specify either a range of quotation numbers or the collective number.

Choose the comparison values to be used.

Reference quotation

You can compare the quotations within the list with a sample quotation. The system displays the percentage deviation between each quotation in the list and the sample quotation.

Mean/minimum value quotation

The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations. Select either the Mean or Minimum value quotation field to choose the type of fictitious quotation.

Percentage basis

The price comparison list displays the percentage of each item in relation to the maximum, minimum, or average price. To determine the display type, enter one of the following:

– + Highest value for each item is the 100% value

– - Lowest value for each item is the 100% value

– "_" Mean value for each item is the 100% value

Price computations
Select the appropriate field to specify which of the following should be taken into account in determining the comparison price:

– Cash discount

– Delivery costs

– Effective price

Choose Program ® Execute.

The price comparison list is generated.

Note

The price comparison list displays the price per item in the base unit stored in the material master record.

Further Information

From the price comparison list, you can do the following:

· Display additional information about the material master record for a particular material

· Display additional information on the quotations in the price comparison

· Display a certain quotation

· Display a vendor master record

· Invoke vendor evaluation functions

If you position the cursor on

- A vendor, only the latter’s evaluation is displayed (in relation to the materials he is able to supply).

- A material, the system generates a ranking list of all vendors that have submitted a quotation.

- T he quotation data (e.g. price or rank), the system will carry out a comparison of evaluations.

Saving the Market Price

The market price is the basis for appraising the vendor's price level for a material and is used for vendor evaluation purposes. A market price can apply to a material or a material group.

You can store a price as the market price from within the price comparison list. Position the cursor on the desired price and choose Edit ® Save market price.

For details on the evaluation of vendors’ price behavior on the basis of the market price, refer to the MM Vendor Evaluation documentation (sections Calculating the Score for Price Level (Main Criterion "Price") and Calculating the Score for Price History (Main Criterion "Price")).