What is Quotation in Purchasing?
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Quotation in purchasing is called request for quotation (RFQ) or draft purchase order. It's an early stage of purchase order which there are no confirmation yet from the supplier about the price or the availability of the product.
The status will be changed to purchase order if our supplier already confirmed the price and availability of the product that are stated in the quotation.
Also, you may issue several RFQ's for the same product to different suppliers - to shop around for the best price. When you decide which RFQ to confirm, cancel the rest.
Quotation in Sale order: We get quote proposal from our customer.
Quotation in Purchase order: We send quote proposal to our supplier.
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