You can populate the Lowest Current Cost fields through the Costing button on the Responses tab of an RFQ, which will be used in the Savings calculations for comparison with the supplier quoted price.
Similar to Reference Price, the Lowest Current Cost represents an additional data point for comparison to the price quoted by a supplier in an RFQ. Within an RFQ on the Responses tab, click on Costing.
Populating the Lowest Current Cost through the Costing functionality will work in the background until all items are processed for pricing. You can continue to work within the RFQ as the Current Lowest Cost details are being populated. Once started, it cannot be canceled.
The price columns of Contract Price, Purchase History, Quote History, Specific Price, and Web Price will start in the RFQ as blank, until the Costing button is triggered. These columns will populate only on the Responses tab. These price fields in RFQs will always stay blank on the Assignments tab.
Applying the Costing on the Responses tab does not affect the Assignments tab. It will not change what is already populated for older RFQs in their CP, PO, QH, SP and WP fields.
If there exists a Recommended MPN and Recommended Manufacturer at the time that a benchmark price is being populated, then the system will pull data based on these as opposed to the Original MPN and Original Manufacturer.
By hovering over the information icon of a Lowest Current Cost, the Supplier, Manufacturer and cost Source are displayed whenever the Supplier and Manufacturer is different than the one in the RFQ.
There are two calculations at the line level, which are:
- Lowest Current Cost Savings = (Lowest Current Cost - Price1) * Quota / 100 * Qty . This is displayed in the default account currency.
- Lowest Current Cost Savings % = Lowest Current Cost Savings / Actual Spend * 100
You can always trigger Costing again to refresh or adjust its settings. Clicking on the Edit Costing icon to the right of the button takes you to a page to customize the rules, which pulls the Lowest Current Cost into the RFQ.
It will start at the default settings as set by your Admin. You can make any necessary modifications. Then click on Refresh list with new settings to save and return to your RFQ.
Within your RFQ on the Spend and Savings tab, there are aggregated calculations in the "Total RFQ" for Lowest Current Cost Savings and for Lowest Current Cost Savings %.