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Request for Quotations


Request for quotations are used by organisations when there is an opportunity to purchase goods from multiple suppliers. Suppliers are invited to bid to supply goods by providing certain details within a request for quotation. This may include prices and delivery times for the item quantities that are specified. The business can then evaluate the offer and determine which supplier(s) are best suited in line with their requirements and scoring criteria.

The RFQ process consists of the following tasks:

  1. Create and send an RFQ to one or more vendors.
  2. Receive and register bids (RFQ replies).
  3. Transfer bids that you accept to a purchase order, purchase agreement, or purchase requisition.
RFQ Business Process Model

RFQ Example

A company may be looking to source a certain component and 6 suppliers all offer the same item. The company send an RFQ to each supplier asking for price details, delivery times, MOQ’s and any shipping charges. Once bids are returned, the company apply their scoring policy to each bid to rate them out of 10 on price, delivery, MOQ and shipping. The supplier that scores highest is awarded the contract to supply the components.

Create RFQ in Dynamics 365

Navigate to Procurement and Sourcing> Request for quotations > All requests for quotations.

Click the “New” button to create a new RFQ. This opens up a creation panel to the right side of the screen with several fields.

Click OK to create.

Complete The RFQ Line Details

In the “Request for quotation lines” section enter the items or categories that will be sent out for bids. 

  • Click the “Add line” button to add a line.
  • Line type – The line type field is used to select whether the line is an “Item” or a “Category”.
  • Item number – Select the item number
  • Site – Select the site where the items will be delivered to.
  • Warehouse – Select the warehouse the items will be delivered to.
Send RFQ to vendors

When the details of the RFQ are filled out, the request for quotation can be sent out to the vendors. 

To send the RQF click the “Quotation” tab up in the ribbon bar and click “Send”.

This will open the print screen. Click the “Print” button and this will open the printing option screen.

The RFQ document can now be exported and sent to the selected vendors.

Enter Replies and Compare

When replies are received from the vendors, they will have to be entered on the RFQ to be able to compile and eventually compare all the replies to pick the best offer.

Before replies are entered, make sure the “Purchaser can edit vendor bid” flag is checked on the procurement and sourcing parameters.

This option is used when vendor collaboration is not being used and replies will not be entered by external vendors through the vendor collaboration portal but internally by buyers.

On the RFQ the vendor replies can now be entered by clicking the “Manage replies” in the ribbon in the “Quotation” tab.

To edit the reply record click the “Edit” button and click “Edit RFQ Reply”.

Save and submit the RFQ reply once finished.

D365 F&SCM also provides a side-by-side comparison screen to compare all the vendor replies. To compare replies, click on the “General” tab in the ribbon and click the “Compare replies” button.

This opens a comparison form that shows all of the vendor replies entered for each vendor and for each item that the vendor bid on. Select the checkboxes next to the bids approved and click the “Accept” button.

In the background, D365 has created a purchase order based on the winning bid we selected. To view the purchase order that D365 created automatically, click the “Request for quotation journals” button in the “Quotation” tab in the ribbon.