A Supplier Quotation is a supplier's price back to you — and the point where competitive buying either pays off or quietly doesn't. ERPNext will collect every quote against a Request for Quotation and, since v15.59, compare them for you with the lowest per-unit price highlighted. The trap is stopping at that green highlight: the cheapest unit rate isn't always the lowest landed cost once freight and charges are in. This guide shows how to collect, compare, and award — without picking the wrong "cheapest".
Where quotations come from
Supplier Quotations are usually the responses to a Request for Quotation, and the winner converts to a Purchase Order. This post is the compare-and-choose step in between.
ERPNext highlights the lowest unit rate in green — but the supplier you should actually award is the one with the lowest landed cost, and those are often not the same row. I am Manoj, ERPNext and Frappe implementation lead at Mith Tech in Bengaluru; getting competitive quoting to actually save money is a standard procurement fix we run.
Don't award on unit rate alone
ERPNext's comparison highlights the lowest per-unit price in green — genuinely useful, but incomplete. Freight, packaging and other charges can flip the ranking: the supplier with a slightly higher unit rate but far lower freight often wins on total landed cost. Try it with your own numbers:
Enter each supplier's unit rate and freight for your order quantity to see the lowest unit rate (green) versus the lowest total landed cost (trophy).
The lowest unit price (green) isn't always the lowest landed cost (trophy) once freight is in. ERPNext's comparison highlights the lowest per-unit rate in green — always sanity-check total landed cost before you award the PO.
How ERPNext's comparison works
Tap through collecting quotes, opening the comparison, reading the highlights, and awarding the Purchase Order.
Each supplier's response to your RFQ becomes a Supplier Quotation linked to it — whether they submit on the portal or you key it in. You can also raise a standalone Supplier Quotation without an RFQ.
Per the buying documentation, each supplier's response links to the RFQ as a Supplier Quotation. From v15.59.0 the submitted RFQ gains a Supplier Quotation Comparison button that lays every linked quote side by side, grouped by item, with the lowest per-unit rate highlighted in green to cut the cognitive load. For a deeper breakdown there's the Supplier Quotation Report.
Collect, compare, award
Recipes to create a Supplier Quotation, compare quotes with the built-in tool, and convert the winner to a Purchase Order.
From an RFQ, or standalone.
From an RFQ:
RFQ > Create > Supplier Quotation (or the supplier
submits it on the portal). It links back to the RFQ.
Standalone (no RFQ):
Buying > Supplier Quotation > New > pick supplier + items.
Enter each supplier's rate and any charges (freight, etc.)
so the comparison reflects true cost.Collect each supplier's quotation
From the RFQ, each portal submission becomes a Supplier Quotation; or Create → Supplier Quotation and key in a supplier's price. Enter freight and charges so comparisons reflect true cost. You can also raise a standalone quotation with no RFQ.
Open the comparison
From the submitted RFQ, click Supplier Quotation Comparison (v15.59.0+) to see all linked quotes grouped by item, lowest unit rate in green.
Weigh landed cost
Use the comparator above — add freight to each quote and compare total landed cost, not just the highlighted unit rate. The cheapest unit price isn't always the cheapest order.
Award the Purchase Order
Open the winning Supplier Quotation → Create → Purchase Order. If different suppliers win different lines, raise one PO per supplier.
Award on the green highlight, or on landed cost?
FAQ
+How do I compare supplier quotations in ERPNext?
From a submitted Request for Quotation, open Supplier Quotation Comparison (available from v15.59.0). It shows every quote linked to that RFQ side by side, grouped by item, with the lowest per-unit price highlighted in green. For a line-by-line breakdown across suppliers, use the Supplier Quotation Report.
+Does the lowest unit price mean the lowest cost in ERPNext?
Not necessarily. ERPNext highlights the lowest per-unit rate, but freight and other charges can change the ranking. A supplier with a marginally higher unit rate but much lower freight can be cheaper on total landed cost. Add charges to each quote and compare the totals before awarding.
+How do I convert a Supplier Quotation to a Purchase Order?
Open the winning Supplier Quotation and choose Create then Purchase Order; the items and rates carry across. If different suppliers won different items, raise one Purchase Order per supplier rather than forcing everything onto a single order.
+Can I create a Supplier Quotation without a Request for Quotation?
Yes. Go to Buying then Supplier Quotation then New, pick the supplier and items, and enter the price. It won't be linked to an RFQ, but you can still record and compare it — useful when a supplier sends a quote you didn't formally request.
+Can different suppliers win different items in one comparison?
Yes. The comparison highlights the best price per item, so you may award line A to one supplier and line B to another. In that case create a separate Purchase Order for each supplier, each carrying the lines they won.
+Does this apply to ERPNext v14, v15 and v16?
Supplier Quotations and the RFQ link work across v14, v15 and v16. The built-in Supplier Quotation Comparison view was added in v15.59.0, so on earlier builds use the Supplier Quotation Report to compare instead.
Closing
The Supplier Quotation step is where competitive buying earns its keep — but only if you compare the right number. Let ERPNext surface the lowest unit rate, then weigh landed cost yourself before awarding, and split the Purchase Order when different suppliers win different lines. That's the difference between looking like you shopped around and actually saving on the order.
Collecting quotes but not sure you're picking the cheapest?
We set up the RFQ → Supplier Quotation → comparison → Purchase Order flow with landed-cost logic, so your buying team awards on true cost, not just the headline unit rate.