Quotation Comparison, Approval Workflow and Purchase Order Creation
Updated 10/13/202610 min read
Selecting a vendor is an important step in procurement, but the process does not end when quotations are received. Purchasing teams must compare commercial offers, confirm the required quantity and purchasing terms, submit the selected quotation for approval, and create the Purchase Order after the required approvals are completed.
Keiro's Quotation Comparison & Approval workflow supports these activities by bringing quotation evaluation and approval-related information into a connected process.
This article explains how to compare vendor quotations, maintain proposed quantities and commercial details, complete the Quotation Approval Form, manage workflow approval, and create a Purchase Order in SAP S/4HANA.
1. Overview of Quotation Comparison and Approval
After vendors submit their quotations against an RFQ, the purchaser reviews the available offers and identifies the preferred quotation for each relevant PR line item.
The selected quotation then moves through the configured approval workflow. Once all required approvals are completed, the system activates the Create PO option.
Process Flow
Quotation Submission → Quotation Comparison → Vendor/Quotation Selection → Proposed Quantity and Commercial Details → Quotation Approval Form → Workflow Approval → Purchase Order Creation
Main Activities
| Stage | Activity | Expected Result |
|---|---|---|
| 1 | Review submitted quotations | Available vendor offers are ready for evaluation. |
| 2 | Compare quotations | Pricing, delivery, discounts, and total value are reviewed where applicable. |
| 3 | Select the preferred quotation | The purchaser identifies the proposed vendor and quotation. |
| 4 | Enter commercial details | Proposed quantity and required purchasing information are maintained. |
| 5 | Complete the approval form | The required PO and approval information is submitted. |
| 6 | Complete workflow approval | The required approval levels are completed. |
| 7 | Create the PO | The Purchase Order is generated through the configured process. |
2. Open Quotation Comparison & Approval
After vendors submit their quotations, the purchaser opens the Quotation Comparison & Approval section in Keiro.
How to View Vendor Comparisons
Open Quotation Comparison & Approval.
Select the relevant PR line item.
Choose View Vendor Comparison.
Review the quotations received from the assigned vendors.
Compare the available commercial information before selecting a quotation.
The system displays the available quotations based on the configured comparison parameters.
Original Screenshot Placement
Insert the original screenshot from the source PDF, page 10, here.
Suggested caption: Keiro quotation comparison screen showing vendor quotations for evaluation.
Use the screenshot from the source document without recreating or redesigning the interface.
3. Quotation Comparison Parameters
The comparison helps the purchaser evaluate the offers received from different vendors. The source process document identifies four comparison parameters.
| Parameter | Description | Purpose |
|---|---|---|
| Delivery Date | Compares the delivery dates committed by each vendor. | Helps assess whether the offer meets the required schedule. |
| Per Unit Amount/Price | Compares the quoted price per unit. | Supports unit-price evaluation. |
| Discount | Compares the discount offered by each vendor. | Helps assess the commercial offer. |
| Total Amount | Compares the overall quotation value, where applicable. | Supports comparison of the total purchasing value. |
The parameters displayed depend on the configured comparison logic and the information available in each quotation.
A purchaser should evaluate the quotations against the organization's purchasing requirements and approval criteria. The lowest price alone should not automatically determine the selection unless that approach is consistent with the organization's rules.
4. Enter Proposed Quantity and Commercial Details
After comparing the vendor quotations, the purchaser selects the required line item and quotation, then maintains the proposed quantity and other purchasing details.
These details help define the intended purchase and support the subsequent approval process.
Process
Quotation Comparison & Approval → Select Line Item → Select Vendor/Quotation → Enter Proposed Quantity → Maintain Tax Code → Payment Terms → Item Text → Submit Proposed Quantity
Details to Be Maintained
| Field | Description |
|---|---|
| Proposed Quantity | Enter the quantity proposed for purchase from the selected vendor. Review the quantity before submitting. |
| Tax Code | Select the applicable tax code based on the material or service and relevant tax requirements. |
| Payment Terms | Select the payment terms agreed with the vendor, such as 30, 45, or 60 days where applicable. |
| Item Text | Enter relevant technical specifications, delivery instructions, commercial conditions, or additional remarks. |
The tax code and other commercial details must follow the organization's configuration and applicable requirements.
Original Screenshot Placement
Insert the original screenshot from the source PDF, page 11, here.
Suggested caption: Proposed quantity and commercial details entered during quotation comparison.
The screenshot should remain unchanged from the source document.
Before Submitting
Confirm the selected vendor and quotation.
Check the proposed quantity.
Verify the tax code.
Review the payment terms.
Add any required item text.
Submit the proposed quantity or save the changes through the configured interface.
The source document also contains screenshots on pages 12 and 13 showing confirmation and saving of proposed quantities and commercial details. Insert these original screenshots after this section in the same order as the source document.
5. Quotation Under Approval
After the purchaser saves the proposed quantity and required commercial details, the selected quotation moves to the Quotation Under Approval stage.
The purchaser then proceeds to the quotation approval form to maintain the required Purchase Order and approval information.
Process
Save or submit the proposed quantity and commercial details.
Open Quotation Under Approval.
Select Confirm & Next.
Complete the required quotation approval fields.
Submit the form to initiate the configured workflow.
Original Screenshot Placement
Insert the original screenshot from the source PDF, page 14, near this section if the quotation status and approval form are being illustrated.
Suggested caption: Quotation Under Approval and the next step in the approval process.
6. Complete the Quotation Approval Form
The Quotation Approval Form captures the information required to submit the selected quotation and related Purchase Order details for approval.
The purchaser should review the required fields and complete the information according to the organization's purchasing process.
Quotation Approval Form Fields
| Field | Description |
|---|---|
| PO Type* | Select the PO document type. It must correspond to the originating PR type. |
| Quotation Approval Condition | Select or maintain the applicable approval condition, if required. |
| Description | Enter a description related to the quotation or PO approval. |
| Comment | Add relevant approval remarks or comments. |
| PO Header Text | Enter information or instructions applicable to the overall Purchase Order. |
| Documents | Attach supporting quotations, approvals, or other required files. |
| BG Applicable | Specify whether a Bank Guarantee (BG) is applicable. |
| Auction Status | Display or review the applicable auction status, such as Live, where relevant. |
| PR Line | Select or search for the PR line item linked to the quotation. |
*The PO Type is identified as a required field in the source process document. Other mandatory fields may depend on the configured form.
Why Must the PO Type Match the PR Type?
The process described in the source document requires the PO type to correspond to the PR type from which the procurement process originated.
Maintaining this consistency supports the intended relationship between the original purchasing requirement and the resulting Purchase Order.
Original Screenshot Placement
Insert the original screenshot from the source PDF, page 15, showing the Quotation Approval Form. Keep it close to the table above so readers can connect the field descriptions with the actual interface.
Suggested caption: Quotation Approval Form used to maintain Purchase Order and approval information.
7. Submit the Workflow for Approval
After completing the Quotation Approval Form, the purchaser selects Submit. The system then triggers the configured workflow for the quotation and related purchasing information.
The approval process follows the organization's configured routing and approval conditions.
Workflow Approval Process
The purchaser completes the approval form.
The purchaser submits the request.
The configured workflow is triggered.
The approver reviews the submitted information.
The approver approves or rejects the request.
If rejected, the request returns to the purchaser with comments, according to the configured process.
If approved, the request proceeds through any remaining required approval levels.
Approval Outcomes
| Status or Outcome | Description |
|---|---|
| Pending | The request is awaiting a required approval decision. |
| Approved | The relevant approval level has been completed successfully. |
| Rejected | The request returns to the purchaser with comments for review and further action. |
| All Required Approvals Complete | The Create PO option becomes available, according to the process described in the source document. |
The exact approval levels, routing conditions, and status labels depend on the configured workflow.
Original Screenshot Placement
Use the original screenshot from the source PDF, page 15, that shows the workflow submission and approval form. If two screenshots are included, retain their original sequence.
8. Create the Purchase Order
The Purchase Order is created after the quotation passes all required workflow approval levels.
According to the source process document, the system activates the Create PO option after the required approvals are complete.
Purchase Order Creation Process
Confirm that all required workflow approval levels are complete.
Review the approved quotation and its commercial details.
Verify that the PO type corresponds to the originating PR type.
Select Create PO.
Allow the system to generate the Purchase Order through the configured process.
Review the generated PO number and resulting purchasing document.
The source document identifies SAP transaction ME21N for Purchase Order creation.
Purchase Order Readiness Checklist
| Check | Expected Result |
|---|---|
| Workflow Approval | All required approval levels are completed. |
| Selected Vendor | Matches the approved quotation. |
| Proposed Quantity | Matches the approved purchasing requirement. |
| Commercial Details | Required tax code, payment terms, and other applicable information have been reviewed. |
| PO Type | Corresponds to the originating PR type. |
| Create PO Option | Becomes available after the required approvals are completed. |
| PO Number | Generated through the configured Purchase Order creation process. |
Original Screenshot Placement
Insert the original screenshots from the source PDF, pages 16 and 17, in the same order.
Suggested captions:
Create PO option becomes available after workflow approval.
Purchase Order creation and confirmation.
These screenshots illustrate the final stage of the process and should be kept with this section rather than placed in the earlier RFQ article.
9. Key SAP Transaction Reference
The source document references the following transactions relevant to quotation comparison and Purchase Order creation.
| Transaction | Purpose |
|---|---|
| ME47 | Maintain or process quotation details in the relevant SAP process. |
| ME49 | Compare quotations. |
| ME21N | Create a Purchase Order. |
Transaction availability and the recommended user interface may vary by SAP S/4HANA edition and configuration. Verify the relevant transaction or Fiori application in the target system before publishing operational instructions.
10. Configuration and Process Controls
The implementation team should validate the quotation comparison and approval process before it is used in production.
| Area | Validation Requirement |
|---|---|
| Quotation Comparison | Confirm that the configured comparison parameters display the required information. |
| Proposed Quantity | Validate quantity entry, confirmation, and saving. |
| Tax Code | Confirm the applicable field values and validation rules. |
| Payment Terms | Verify the available terms and required fields. |
| Item Text | Confirm that purchasing instructions can be recorded appropriately. |
| Approval Form | Validate the fields and required-field rules. |
| PO Type | Ensure the PO type corresponds to the originating PR type. |
| Documents | Verify attachment handling and access permissions. |
| Workflow | Test approval routing, rejection handling, and status updates. |
| Create PO | Confirm that PO creation becomes available only after the required approvals are completed. |
| PO Number | Verify successful generation of the Purchase Order and its reference information. |
11. Common Testing Scenarios
The source process document includes testing as an implementation activity. The following scenarios organize the key checks described in the process.
| Test Scenario | Expected Result |
|---|---|
| Compare multiple quotations | Available quotations are displayed for the selected PR line item. |
| Review comparison parameters | Configured delivery, price, discount, and total-value information is displayed where applicable. |
| Submit proposed quantity | The proposed quantity and required commercial details are saved. |
| Submit approval form | The configured workflow is triggered. |
| Reject an approval request | The item returns to the purchaser with comments, according to the configured process. |
| Complete all required approvals | The Create PO option becomes available. |
| Create a Purchase Order | The system generates the PO through the configured process. |
These are process-aligned test scenarios, not a claim that every scenario has already been executed or passed.
12. Best Practices for Quotation Approval and PO Creation
Compare offers consistently: Review the configured commercial parameters for each quotation.
Check the proposed quantity: Confirm that the quantity reflects the approved purchasing requirement.
Verify commercial information: Review the tax code, payment terms, and item text before submission.
Maintain supporting documents: Attach required quotations and approval documents.
Use the correct PO type: Ensure it corresponds to the originating PR type.
Follow the configured workflow: Do not bypass required approval levels.
Review rejection comments: Address the issues raised before resubmitting a request.
Validate PO creation: Confirm that the PO number and resulting document are generated successfully.
Conclusion
Quotation comparison and approval help organizations evaluate vendor offers before committing to a purchase. By connecting commercial comparison, proposed quantity entry, approval form completion, workflow routing, and Purchase Order creation, Keiro supports a structured process for managing these activities.
With appropriate SAP configuration, clear approval rules, and validated document integration, purchasing teams can follow a consistent process from quotation evaluation to the creation of an approved Purchase Order.
Frequently Asked Questions
1. What is quotation comparison in procurement?
Quotation comparison is the process of evaluating vendor offers using parameters such as delivery date, unit price, discount, and total amount where applicable.
2. What details are entered before quotation approval?
The source process includes proposed quantity, tax code, payment terms, item text, and the required quotation approval form details.
3. Why must the PO type match the PR type?
The source process requires the PO type to correspond to the originating PR type, maintaining consistency between the requisition and the resulting Purchase Order.
4. What happens when a quotation is rejected?
According to the described process, the item returns to the purchaser with comments for review and further action.
5. When does the Create PO option become available?
It becomes available after the quotation successfully completes all required workflow approval levels, according to the configured process.
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