Quotation Comparison & Comparative Statement (L1, L2, L3)

About the Quotation Comparison & Comparative Statement (L1, L2, L3)

Put every supplier’s quotation on one footing and see who is cheapest for each item and overall. Enter the items you asked prices for, then each quotation — rates, item discounts, an overall discount, freight, packing, installation and other charges (a lump sum, a percentage of the value, an amount per unit, or included), the tax on items and charges, payment terms, delivery time and validity — or bring them in from the response sheets suppliers return from the RFQ Generator, or from CSV and Excel quotations.

Every offer is brought to an evaluated cost per item: the rate after discounts, its share of the charges and, when they are a cost to you, the taxes. Set a yearly rate and the cost of money of the payment terms counts too: an advance makes an offer dearer, credit makes it cheaper. The page ranks L1, L2 and L3 for each item and overall, marks offers it leaves out (not technically acceptable, expired, delivering too late), lists the items each supplier did not quote, and works out the award item by item: each item to its L1, every order priced again on what it gets, with the saving against one order to the L1. A purchase committee gets a comparative statement with remarks and an approval block, and the chosen offer becomes a draft for the Purchase Order Generator.

Without a pass the comparison is a free preview: the L1, L2 and L3 counts and the remarks show in full, and the first rows of each table with every amount hidden; the statement PDF, the workbook, the CSV, the summary and the PO draft unlock with a Premium pass. Your comparison file always saves, with or without a pass.

Common uses

• A purchase committee choosing a supplier for a year’s stationery, spares or consumables, with a statement to sign.
• A project buyer comparing quotations for equipment with installation, freight and different payment terms.
• A small business checking whether splitting an order between two suppliers really saves money.
• An auditor or a finance team checking that the lowest offer meeting the requirements was chosen.

How the evaluated cost is worked out

• Net value of a line = rate × quantity, less the item discount, less the overall discount.
• Charges: a lump sum is shared over the lines in proportion to their net value; a percentage is of each line’s net value; an amount per unit follows the quantity; “included” adds nothing.
• Taxes: the item’s tax rate on its net value, and the tax on charges on its share of the charges. With prices before tax no tax is counted (you recover it); with taxes it is.
• Cost of money (when you set a yearly rate r): the cost so far (net value, charges and any taxes counted) × r × (advance share × delivery days − rest × credit days) ÷ 365. Paying early costs money; paying late saves it.
• Evaluated cost per unit = everything above ÷ the quantity. Ranks compare it to the cent: two offers that print the same share the place.

Which offers are ranked

• An offer not technically acceptable is left out. One whose validity ended before the decision date, or that delivers later than you need, is flagged — or left out, if you choose so.
• A line that does not meet the specification is never ranked for its item.
• The overall ranking takes offers that quote every item. Choose load them to rank the others too, with each missing item at the highest evaluated rate another considered supplier quoted for it (the usual way to compare incomplete offers); an item nobody else quoted cannot be loaded.
• A value that is not a number (a rate of “on request”, a discount of “two”) keeps that offer out until it is fixed — it is never read as zero.

The award item by item

Each item goes to its L1 (on a tie, to the supplier ranked higher overall), or to the supplier you choose. Each supplier’s order is then priced again on the items it gets — the overall discount on what it gets, a percentage charge on that value, a charge per unit on those units, and a lump sum in full on every order — so the total is what the orders would cost. Splitting an order has costs of its own: suppliers may quote again for part of an order, and every order needs its own purchase order, receipt and invoice.

Request for quotations: what good practice expects

The UNCITRAL Model Law on Public Procurement sets out the request-for-quotations method many purchase rules follow: ask as many suppliers as practicable, at least three (article 34(2)); tell each one what the price must include — transport, insurance, duties and taxes (article 46(1)); accept one quotation from each, without negotiation (article 46(2)); and choose the lowest-priced quotation that meets the needs set out in the request (article 46(3)). The remarks note items with fewer than three valid quotations.

Limitations

• All quotations must be in one currency; convert a foreign-currency quotation before you enter it.
• It compares price, charges, taxes and payment terms. Quality, service and other criteria belong in a weighted evaluation: use the Vendor Evaluation Scorecard beside it.
• Quantity breaks, minimum order values and price changes for a part order are not modelled: ask the supplier, and enter its revised quotation.
• The tax treatment is yours to choose: whether you can recover a tax depends on your registration and the purchase.
• Up to 20 quotations and 500 items in one comparison.

Privacy

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