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 collects every quote against a Request for Quotation, and its Supplier Quotation Comparison report lines them up with the lowest per-unit price highlighted; since v15.59.0 a button on the RFQ opens it directly. 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".
ERPNext highlights the lowest unit rate in green, but the supplier you should award is the one with the lowest landed cost, and those are often not the same row. I lead ERPNext and Frappe implementations at MithTech, a team of Frappe specialists in Bengaluru. Making competitive quoting actually save money is a routine procurement fix for us.
Why not award on unit rate alone?
ERPNext's comparison highlights the lowest per-unit price in green: 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).
How does ERPNext's comparison work?
Tap through collecting quotes, opening the comparison, reading the highlights, and awarding the Purchase Order.
Per the buying documentation, each supplier's response links to the RFQ as a Supplier Quotation. The Supplier Quotation Comparison report (PR #23323, 2020) lays the quotes side by side; grouped by item, it highlights the lowest per-unit rate in green. From v15.59.0 the submitted RFQ has a Supplier Quotation Comparison button (PR #47206) that opens the report for just that RFQ's quotes. Group by supplier instead for a per-supplier breakdown.
How do you collect, compare and award?
Recipes to create a Supplier Quotation, compare quotes with the built-in tool, and convert the winner to a Purchase Order.
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. On older builds, open the report from Buying and filter it by the RFQ.
Weigh landed cost
Use the comparator above: add freight to each quote and compare total landed cost, not just the highlighted unit rate. Freight that arrives on a separate bill later goes on a Landed Cost Voucher. 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.
Should you award on the green highlight or on landed cost?
| Lowest unit rate is enough | Weigh full landed cost |
|---|---|
| Freight is identical or negligible across suppliers | Suppliers quote very different freight / packing |
| Small, light items where shipping barely moves cost | Heavy or bulky goods where freight dominates |
| A quick re-buy of a routine item | A large one-off order where a few percent matters |
| Single-item quotes | Mixed baskets where suppliers win different lines |
At a glance
| Step | Where in ERPNext | Watch for |
|---|---|---|
| Collect | Supplier Quotations from the RFQ portal, from Create → Supplier Quotation, or standalone | Enter freight and charges on each quote |
| Compare | RFQ → Supplier Quotation Comparison (v15.59.0+), or the report filtered by RFQ | Green marks the lowest unit rate only |
| Decide | Landed cost: unit rate × quantity + freight and charges | The cheapest unit rate can lose on total cost |
| Award | Supplier Quotation → Create → Purchase Order | One PO per supplier when lines are split |
FAQ: what do people ask most?
+How do I compare supplier quotations in ERPNext?
From a submitted Request for Quotation, click Supplier Quotation Comparison (the button arrived in v15.59.0). It opens the Supplier Quotation Comparison report for that RFQ's quotes, grouped by item, with the lowest per-unit price highlighted in green. Group it by supplier for a line-by-line view of each supplier's prices.
+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, the RFQ link and the Supplier Quotation Comparison report work across v14, v15 and v16. The button on the RFQ arrived in v15.59.0; on earlier builds, open the report from the Buying module and filter it by the RFQ.
What is the bottom line?
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.
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Manoj · Published on 28 July 2026
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