Convert Quotation into Supplier Agreement

Explanation

This activity is used to convert quotations into supplier agreements. When you convert the quotation, you can add it either to a new Supplier agreement, or to an existing purchase agreement or a blanket purchase order.

Note: Quotations for assortments can only result in a purchase agreement. The ship via code that is used in the converted supplier agreement must exist on all the supplier addresses that are being used.

Prerequisites

• The quotation line must be in Approved status.
• Normally, supply chain parameters should be defined for the supply chain relation. For external suppliers, this can be done in the Supplier to Site Supply Chain Parameters window, and for internal suppliers this can be done in the Site to Site Supply Chain Parameters window.

System Effects

• The quotation is converted and receives the Converted status when a supplier agreement is created or the quotation is added to an existing supplier agreement. A message displays the assigned supplier agreement number. If a new supplier agreement was created, it receives the Planned status . Any defined ship via code, delivery terms, payment terms and price including tax settings will be valid for the supplier agreement. Rejection letters are printed for the other quotations, provided that the print feature is used.
• If the company tax regime is VAT, the tax code will be retrieved from the Supplier for Purchase Part window. Based on the tax code retrieved, the maximum amount inclusive of tax will be calculated and displayed in the Maximum Amount incl. Tax field.  

Window

Agreement Quotation Approval

Related Window Descriptions

Agreement Quotation Approval
Quotation to Supplier Agreement - Parameters

Procedure

Approve a quotation and convert it into a supplier agreement:

1. Query for the appropriate request for quotation.
2. Select the quotation line that you want to convert into a supplier agreement, right-click and then click Create Supplier Agreement.
3. A message appears. Click Yes to create a supplier agreement.
4. The Quotation to Supplier Agreement - Parameters dialog box opens.

• To create a new purchase agreement: Decide whether it will be a purchase agreement or a blanket purchase order (purchase agreement is set as default). Optionally, enter the supplier agreement group and the supplier's agreement reference, and change the maximum amount. Click Create New.
• To add the quotation to an existing supplier agreement: Decide whether it is going to be a purchase agreement or a blanket purchase order. Choose from the available supplier agreements in the table, and enter the supplier agreement number in the Add to Supplier Agreement field. Click Add To Supplier Agreement.
• In the Quotation to Supplier Agreement - Parameters dialog box, existing orders are filtered according to the price including tax setting. If you select an approved agreement quotation line with the Use Price Incl Tax check box selected and try to convert that to a supplier agreement, then the Quotation to Supplier Agreement - Parameters dialog box will only show existing supplier agreements with the Use Price Incl Tax check box selected and vice versa.

5. A message displays the assigned supplier agreement number and line number. To confirm, click OK.

Note: If you want to enter a note for the quotation line, be sure to do this before the quotation line is converted or rejected.