RFQ in D365

Updated: Feb 24

Below written article provide you great insight on RFQ process.


RFQ means Request for quotation in Purchase Process in D365. It’s a process of to select best vendor in terms of price, quality and delivery times for the item quantities defined by the purchaser. Organization or purchaser issue RFQ when they want to receive competitive offers from several vendors.






Definition with Example

An Organization want to buy an item from the market and organization is having list of vendors, so organization will be going to buy from the vendor which will give him a best rate, best quality and whose delivery terms are matched with company policy. An organization how choose the best vendor from the list of vendor process is known as “Request for Quotation”





Pre-Requisite of RFQ in D365


1-Setup Scoring Methods in D365


Path :- Procurement & Sourcing>Setup>Request for Quotation>Scoring Method




A scoring method is a set of criteria that can be used to compare the bids that are sent in reply to a RFQ (Request for Quotation). Defined criteria will be established in the RFQ to objectively evaluate the proposal from the outside vendor. Organization want to rate or can rate the vendor on price of goods or want to compare the bids on price and quality both.

Organization can enter multiple scoring criteria in the scoring method such as Cost, Quality, vendor rating etc. Here organization can define Range From and Range to on a various criteria and when organization received reply from vendor.


For ex Vendor 1 is giving 10% discount and Vendor 2 is giving 15% discount but Vendor 1 Quality is 8 from the range between 1 to 10 and Vendor 2 quality is 2 from the same range, then organization will give priority to vendor where discount is less but quality is up to the mark as per the organization requirement


These Scoring method is linked with solicitation type.


2-Setup Solicitation Type in D365


PATH :- Procurement & Sourcing > Setup>Request for Quotation>Solicitation type


Organization need to create solicitation type for the RFQ default Parameter and select the scoring method for the solicitation type. Organization can create and maintain default solicitation types to match the procurement requirement.


Solicitation is the act of offering, or attempting to purchase, goods and/or services. Legal status may be specific to the time or place where it occurs. – Wiki Definition



3-Setup RFQ Parameter in D365


Path: - Procurement and Sourcing > Setup > Procurement & Sourcing Parameter > Request for Quotation



Purchase Type


Once the Request for Quotation type is confirmed which kind of Purchase user want to make. Here three option are available for user. “Purchase Order, Purchase Agreement and Purchase Requisition”. Here user can choose the default type of Order.


Solicitation type


User can select the default solicitation type to match the procurement requirement


Days Offset


Here user can define after how many days RFQ (Request for Quotation) will expire in D365


Working days


When working days are enabled, it will make sure that only those days are count which are working days. It will exclude off days while calculating the Expiration day of RFQ in D365


Mode of Delivery


User can setup the default Mode of delivery


Lock RFQs When they are sent


If organization want to lock the RFQ when they are sent to vendors, then this Boolean should by yes


Purchaser can edit vendor bid’


It should be yes so that organization or purchaser can reply or edit the bid for approval of vendor.

There are two ways organization can enter the Reply received from Vendor.

1. Vendor Can directly reply on Vendor Collaboration portal where they can view quote received from purchaser and directly reply on that

2. Vendor can submit reply through mail or letter and Purchase will enter the details in the system manually. This Boolean should be yes in this case.




Process flow of RFQ in D365




1. Create RFQ in D365


Path: - Procurement and Sourcing>Request for Quotation > All request for quotation


Users need to click on New on Menu tab, which will open a new page where user will select the warehouse and site and change solicitation type if required to change from the default.


Click on OK will open page where user can Add Line items and quantity details required. Here delivery date and Expiration date and time will auto calculate from default parameter.


Once user has entered all the items



2. Select Vendor


Now need to click on header and select vendors to whom Request for quotation need to send.


After entering the list of vendors in the line, user need to click on Send button in Quotation tab (Send)



Now after sending the quotation to the vendors, now purchaser got to know that he forgets to add questionaries' to send to vendor. So, for this user need to click on “Create” on Quotation tab under amendment section


Step 3-4-5 in RFQ in D365


Purchaser Can add questionaries' after listing all the vendors also or can click on Create under Amendment section in Quotation tab after sending the quotation to the vendor also both will work allow user to do so.



So, Now the status will change from Sent to “Under Amendment” and user can add all the questionaries' he wants to add.

(Users need to configure questionnaires - Not includes in this article)

So, after making all the changes in the RFQ Order, user need to click on Finalize in Amendment Menu section



Click on Final will open Wizard and system ask some questions to confirm and update the details if necessary



And status will again change from Under Amendment to Send. User can check status in view



Through Lowest Status and Highest Status user can identify the flow of RFQ that at which stage RFQ is currently now.





Step 6 - Enter Vendor Reply- Manually in D365


Organization Received the reply on mail or through letters, now purchase will perform the quotes and other necessary information.


Users need to select the Quotation Number and click on manage reply.


Click on Manage Reply will open below page where user select the vendor and click on edit reply



In the new form user will enter the Unit price and other necessary detail. Now the status will change from “Not Started” to “Purchase is editing”.


User also need to check the questionaries' before click on submit button in the tab.



Click on questionaries' and enter the reply received from Vendor



it will open questionnaire page to answer, so here user (Purchaser in this case) will answer all the question received from vendor

After Completing the Questionnaire, user need to click on submit in the menu. System will prompt with You have successfully submitted your bid.



Same Process will be done for the rest of vendors as organization is receiving the rates from vendors


Now status will change to “Submitted by Purchaser”


Now Purchaser need to enter the Rating values based on Received Samples, Rates etc. for this User must click on Header and select Bid Scoring and enter values in criteria



Now Purchaser need to enter the Rating values based on Received Samples, Rates etc. for this User must click on Header and select Bid Scoring and enter values in criteria



Here in above screen, you can see once all the reply are received and enter, then Lowest Replies and Highest Status are now “Received”. It means all the reply are received if any of reply is pending there then in Lower Status will be “Sent” and Highest status will be “Received”


Click on Compare Reply will open below page


Here now user will select the Vendor based on best deal and click on Mark of Header type which will select lines automatically and then click on Accept Request for Quotation


System will prompt Accept Request for Quotation for the select vendor


After clicking ok, system will prompt for Rejection for quotation for the rest of the vendors





System will create automatic a purchase order in the system for the same accepted vendor for same item item, price and discount etc.




Now we can check the purchase order in D365

Path :- Procurement and Sourcing>Purchase Order>All Purchase Order

Path : Account Payable> Purchase Orders > All Purchase order



System will create Purchase Order with the values he shared on vendor reply and still status is open only, user need to click on purchase and confirm the purchase order




That’s all for this article. Thankyou


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