Sales Quotation

1. Business-User Summary

A Sales Quotation is a legally binding offer to a customer for delivering a specific quantity of products at a specific price, valid for a specific timeframe.

2. Why This Process Matters

This is the key document where pricing, quantities, and delivery dates are promised to the customer. Accurate quotation processing ensures the company maintains expected profit margins and commits to achievable delivery timelines without taking unapproved financial risks.

3. Where It Fits in Order-to-Cash

The quotation typically follows a Sales Inquiry or a customer request for proposal (RFP). It acts as the direct predecessor to a Sales Order. A Sales Order cannot be generated without a fully approved Quotation if the process starts here.

For a broader understanding of how this step impacts the customer and creates value, review the O2C Value Chain View.

4. Process Card

5. Roles Involved

• Salesman: Creates and revises the quotation.
• Financial Director: Reviews and approves/rejects the financial terms and pricing.
• Sales Director: Final approver before the quote goes to the customer.
• Customer: Accepts or rejects the final approved quotation.

6. BPMN Process Flow

7. Simple Status Flow

8. Step-by-Step Process

9. SAP Touchpoints

• VA21: Create Quotation
• VA22: Change Quotation (Used for revisions and capturing approvals)
• VA23: Display Quotation

10. Business Rules & Controls

1. Approval Prerequisite for Sales Order: A Sales order cannot be created from a quotation unless the quotation is Fully Approved.
2. Strict Approval Order: Financial Director approval must happen before Sales Director approval.
3. Final Approval: Sales Director approval is the final internal approval.
4. No Bypass: A Salesman cannot bypass the approval workflow.
5. Rework Loop: If either approver rejects, the quotation returns to the Salesman for revision.
6. No Early Credit Check: The Quotation does not trigger a credit check.
7. Credit Check Timing: Credit checks start later during sales order processing.
8. Mandatory Field: The Sales Employee remains a mandatory field.

11. Integration Points

• Master Data (Customer and Material)
• Pricing Master Data (Condition Records)

12. Reports and KPIs

DEBUG data: "[\n{ \"status\": \"Finance Review\", \"time\": 1.2 },\n{ \"status\": \"Sales Review\", \"time\": 0.8 },\n{ \"status\": \"Customer Review\", \"time\": 3.5 }\n]"
DEBUG parsedData: [
  {
    "status": "Finance Review",
    "time": 1.2
  },
  {
    "status": "Sales Review",
    "time": 0.8
  },
  {
    "status": "Customer Review",
    "time": 3.5
  }
]

13. Risks and Common Mistakes

• Setting a validity period that is too long, exposing the company to raw material price hikes.
• Forgetting to link the quotation to a Sales Order, resulting in broken document flow and duplicate data entry.

14. Fit-Gap / Customization Notes

• Custom Development (WRICEF): The two-step approval workflow (Finance Director -> Sales Director) is a custom extension built using SAP Workflow to enforce our specific business rule.

15. Source Document Reference

16. Knowledge Check

Question: Which of the following statements is true regarding quotation approvals? A) The Sales Director approves the quotation before the Financial Director. B) The credit check is triggered immediately upon saving the quotation. C) A Sales Order can be created directly from a quotation pending Sales Director approval. D) The Financial Director must approve the quotation before the Sales Director.

(Answer: D)