How to Compare Vendor Quotes and Create a PO in Business Central
When several vendors quote the same requirement, the cheapest unit price is often not the cheapest order. Freight may be included by one vendor and billed by another, one may sell fittings only in boxes, and one may leave the validity date off. Comparing quotes means putting them on the same basis first: what you would actually buy, what freight adds, and whether each meets the date and is still valid.
In Microsoft Dynamics 365 Business Central the awarded bid is entered as a purchase quote and converted with Make Order, so the PO keeps a trace back to the vendor's quote and your requirement. This guide follows a conceptual walkthrough: three PDF quotes for a motor and fittings, normalized to landed totals, awarded by a buyer, entered and converted, then approved and checked against the bid.
- Who does itBuyer or purchasing agent, with a senior buyer awarding and approving
- How oftenPer requirement that goes out for quotes
- Steps12 steps · 8 systems
Watch the full workflow
a conceptual walkthrough of the agent's run, with sample data.
In this conceptual walkthrough, an AI agent reads planner03's requirement PR-3318 (one 15 HP motor, 6 flanges and 12 elbows by 11/20/2026) and three vendor quote PDFs. Arbor's AES-Q-7712 totals 2,061.40 with freight included; Bellmont's BI-40551 has the lowest unit prices but adds 165.00 freight for 2,172.40 and has no validity date; Cobalt's CMF-2290 sells fittings only in boxes and packs, so 8 flanges and 20 elbows plus 60.00 freight come to 2,186.00. The agent normalizes all three in a comparison workbook and recommends Arbor under policy CMP-01; buyer01 awards Arbor and keeps Cobalt as a backup. In Business Central-style screens the agent finds there is no existing purchase quote for PR-3318, checks the vendor card, enters purchase quote PQ-1018, replaces a defaulted 1,760.00 motor cost with the quoted 1,840.00, attaches the evidence and reopens it, then runs Make Order to create PO-1043. After buyer01 approves the PO, the agent reopens it beside the bid, confirms every line and the 2,061.40 total, and reports the outcome.
Conceptual walkthrough: the screens are generic stand-ins modeled on how Microsoft Dynamics 365 Business Central lays out this work, not the product's own interface, and every company, vendor and value is sample data. Workflow and screens vary by ERP version and configuration. No vendor partnership is implied.
- 0:26Read the purchase requirement
- 0:52Read quote A
- 1:11Read quote B and note what is missing
- 1:33Read quote C and its pack sizes
- 1:53Normalize and rank: which bid wins?
- 2:41Buyer awards the bid
- 3:11Check for an existing purchase quote and the vendor
- 3:37Enter the awarded bid as a purchase quote
- 4:47Convert the quote with Make Order
- 4:59Find the PO and route it for approval
- 5:42Reopen the PO and compare it with the bid
- 6:12Record the outcome and report
Systems involved
You need access to each of these before you start. In the walkthrough the agent works in all of them from one desktop, signed in as the user.
- Microsoft Dynamics 365 Business Central – Purchase QuotesPurchase quote PQ-1018 for the awarded bid, attachments and Make Order
- Microsoft Dynamics 365 Business Central – Purchase OrdersPO-1043 created from the quote, approval request, status and quantity received
- Microsoft Dynamics 365 Business Central – vendor card and quote archiveVendor approval and blocked status, quote e-mail; archived quote version
- Microsoft Outlook (web)Requirement email, three vendor quote replies, Held quotes folder and the outcome report
- PDF viewerVendor quotes AES-Q-7712, BI-40551 and CMF-2290
- ExcelPR-3318-comparison.xlsx: per-unit price, quantity bought, freight, landed total, delivery and validity
- Microsoft TeamsPurchasing approvals channel for the award and PO approval
- LaunchAI agent run panelRun plan, policies CMP-01 v3 and APR-02, approver and closing summary
What you start with
- Purchase requirement PR-3318 with items, quantities and requested receipt date 11/20/2026
- Vendor quote PDFs: Arbor AES-Q-7712, Bellmont BI-40551, Cobalt CMF-2290
- Award policy CMP-01 (lowest landed total that meets the date with a valid quote, decided by a person)
- PO approval policy APR-02 (buyer01 approves any order over 1,000.00)
- Vendor card for the awarded vendor
What you end with
- Comparison workbook with landed totals and the recorded award
- Purchase quote PQ-1018 with the vendor PDF and comparison attached, archived as version 1
- PO-1043 to Arbor Electric Supply for 2,061.40, approved by buyer01 and released
- Cobalt's quote filed in Held quotes as a backup; report to buyer01 and planner03
The workflow at a glance
Action Decision Human review Select a step to jump to how it's done.
- 01 Action · Microsoft Outlook (web) Read the purchase requirement
- 02 Action · PDF viewer Read quote A
- 03 Action · PDF viewer Read quote B and note what is missing
- 04 Action · PDF viewer Read quote C and its pack sizes
- 05 Decision · Excel Normalize and rank: which bid wins? Yes Recommend the lowest landed bid that meets the date with a valid quote. No If no bid qualifies, go back to the vendors before recommending anything.
- 06 · Human review · Microsoft Teams Buyer awards the bid
- 07 Action · Microsoft Dynamics 365 Business Central – Purchase Quotes Check for an existing purchase quote and the vendor
- 08 Action · Microsoft Dynamics 365 Business Central – Purchase Quotes Enter the awarded bid as a purchase quote
- 09 Action · Microsoft Dynamics 365 Business Central – Purchase Quotes Convert the quote with Make Order
- 10 · Human review · Microsoft Dynamics 365 Business Central – Purchase Orders Find the PO and route it for approval
- 11 Action · Microsoft Dynamics 365 Business Central – Purchase Orders + PDF viewer Reopen the PO and compare it with the bid
- 12 Action · Microsoft Outlook (web) + Excel Record the outcome and report
Step-by-step: how to do it
-
Action · Microsoft Outlook (web) · 0:26 in the video
Read the purchase requirement
Open the requirement and note each item number, description, quantity and unit, the requested receipt date and which vendors were asked to quote. These are what every quote is measured against.
In the videoPR-3318 from planner03: pump skid P-14 motor replacement.
- Ln 1 · MTR-15-254T Motor 15 HP 1800 rpm TEFC, 254T frame
- Qty
- 1 EA
- Ln 2 · FLG-2-150WN Flange 2 in. 150# weld-neck
- Qty
- 6 EA
- Ln 3 · ELB-2-90-S40 Elbow 2 in. 90° sch 40
- Qty
- 12 EA
- Requested receipt date 11/20/2026
- RFQ went to Arbor, Bellmont and Cobalt
-
-
Action · PDF viewer · 0:52 in the video
Read quote A
For each quote capture the unit price and quantity per line, how freight is handled, the total, the delivery date and how long the quote is valid.
In the videoAES-Q-7712 · Arbor Electric Supply.
- Motor
- 1 × 1,840.00
- Flanges
- 6 × 18.50 = 111.00
- Elbows
- 12 × 9.20 = 110.40
- Freight
- Prepaid & allowed (included)
- Total
- 2,061.40
- Delivery
- 11/12/2026
- Valid through
- 12/02/2026
-
Action · PDF viewer · 1:11 in the video
Read quote B and note what is missing
Read the next quote the same way. If something you need, such as the validity date, is not on the quote, mark it missing rather than assuming a value; it must be confirmed before any award to that vendor.
In the videoBI-40551 · Bellmont Industrial.
- Unit prices
- Motor 1,795.00 · flanges 17.90 · elbows 8.75 (lowest)
- Freight
- 165.00 LTL, separate line
- Total
- 2,172.40
- Delivery
- 11/19/2026
- Valid through
- MISSING
-
Action · PDF viewer · 1:33 in the video
Read quote C and its pack sizes
Check for minimum orders and pack sizes. When a vendor sells only in boxes or packs, work out how many you would actually have to buy to cover the requirement and what that costs.
In the videoCMF-2290 · Cobalt Motion & Flow: 'Minimum order 2 boxes on flanges. Fittings sold in full boxes/packs only.'
- Motor
- 1,810.00
- Flanges
- Box of 4 at 70.00, min 2 boxes = 8 flanges, 140.00
- Elbows
- Pack of 10 at 88.00, 2 packs = 20 elbows, 176.00
- Freight
- 60.00 flat
- Total
- 2,186.00
- Delivery / valid
- 11/10/2026 · through 12/03/2026
-
Decision · Excel · 1:53 in the video
Normalize and rank: which bid wins?
Put all quotes on the same basis in one sheet: price per unit, the quantity you would actually buy, freight, then landed total. Add delivery against the requested date and the validity date, and list missing values. Rank by landed total and recommend the lowest one that meets the date with a valid quote.
- If yes Recommend the lowest landed bid that meets the date with a valid quote.
- If no If no bid qualifies, go back to the vendors before recommending anything.
In the videoPR-3318-comparison.xlsx
- A · Arbor AES-Q-7712 Rank 1 · recommended
- Freight
- 0.00 (included)
- Landed
- 2,061.40
- Delivery
- 11/12 ✓
- B · Bellmont BI-40551 Rank 2 (+111.00)
- Freight
- 165.00
- Landed
- 2,172.40
- Valid
- MISSING
- C · Cobalt CMF-2290 Rank 3 (+124.60)
- Freight
- 60.00
- Landed
- 2,186.00
- Surplus
- 2 flanges, 8 elbows
- Bellmont's motor is 45.00 cheaper, but its landed total is 111.00 higher
-
Human review · Microsoft Teams · 2:41 in the video
Buyer awards the bid
Send the buyer the comparison with your recommendation, the other bids and why they ranked lower, and the evidence. Enter nothing in the ERP until the award is recorded. File any quote the buyer wants kept as a backup without ordering from it or replying.
In the video- Recommended (CMP-01)
- A · Arbor AES-Q-7712 · 2,061.40 · 11/12
- Decision
- buyer01, 10:08: award Arbor (V-1040), AES-Q-7712, 2,061.40
- Cobalt
- Held as backup, not ordered; filed in Held quotes
- Bellmont
- Not selected
-
Action · Microsoft Dynamics 365 Business Central – Purchase Quotes · 3:11 in the video
Check for an existing purchase quote and the vendor
Use the search (Alt+Q) to open Purchase Quotes and look for a quote that already references the requirement, so you neither duplicate one nor miss one to reuse. Open the vendor record and confirm the vendor is approved, not blocked, and that its quote e-mail matches the sender of the quote.
In the video- Search
- 'purchase quotes'
- Existing quotes
- PQ-1012 (PR-3271), PQ-1016 (PR-3290) · none for PR-3318
- Vendor
- V-1040 Arbor Electric Supply
- Blocked
- No
- Approved vendor
- Yes · 2026 list
- E-mail (quotes)
- quotes@arbor-electric.test
-
Action · Microsoft Dynamics 365 Business Central – Purchase Quotes · 3:37 in the video
Enter the awarded bid as a purchase quote
Create a new purchase quote for the awarded vendor with the vendor's quote number, your requirement reference and the requested receipt date. Enter item lines exactly as requested, then check each unit cost against the vendor's PDF; costs often default from the item card. Confirm the total matches the bid and the award, attach the vendor quote and comparison, then close the quote, find it again and check everything persisted.
In the video- Quote
- PQ-1018 · V-1040 · vendor quote AES-Q-7712 · ref PR-3318 · receipt 11/20/2026
- Defaulted cost
- Motor 1,760.00 from the item card → 1,840.00 from AES-Q-7712
- Lines
- 1,840.00 + 111.00 + 110.40, no freight line
- Total
- 2,061.40
- Attachments
- AES-Q-7712.pdf, PR-3318-comparison.xlsx
-
Action · Microsoft Dynamics 365 Business Central – Purchase Quotes · 4:47 in the video
Convert the quote with Make Order
On the purchase quote, run Make Order and confirm. Only convert the quote the buyer awarded; a quote in the system is not authorization by itself. Note the new order number and whether the quote was archived.
In the video- Message
- Quote PQ-1018 has been converted to order PO-1043. The quote was archived (version 1).
- Created
- 10:18:05
-
Human review · Microsoft Dynamics 365 Business Central – Purchase Orders · 4:59 in the video
Find the PO and route it for approval
Close the quote and search the purchase orders for the new order rather than trusting the conversion message. Check vendor, reference, amount and status. If your approval policy covers the amount, send it for approval through your approval workflow; the person who created the order does not approve it.
In the video- Found
- PO-1043 · V-1040 Arbor · PR-3318 · 2,061.40 · Open
- Rule
- APR-02: buyer01 approves any order over 1,000.00
- Status
- Pending Approval
- Decision
- buyer01, 10:24: 'Approved PO-1043 in the ERP. Matches the award.'
-
Action · Microsoft Dynamics 365 Business Central – Purchase Orders + PDF viewer · 5:42 in the video
Reopen the PO and compare it with the bid
Search for the PO again and open it next to the vendor's quote. Check vendor, quote number and reference, then item, quantity and unit cost line by line, and the total against the bid and the award. Confirm the status after approval and that nothing shows as received.
In the video- Header
- V-1040 · AES-Q-7712 · PQ-1018 · PR-3318 · receipt 11/20/2026
- Lines
- MTR-15-254T 1 × 1,840.00 · FLG-2-150WN 6 × 18.50 · ELB-2-90-S40 12 × 9.20
- Total
- 2,061.40, equal to bid and award
- Status
- Released
- Qty received
- 0 on every line
-
Action · Microsoft Outlook (web) + Excel · 6:12 in the video
Record the outcome and report
Check the archived quote version if your setup archives quotes, record the decision for every bid in the comparison, and email the buyer and requester the PO number, what was selected and why, what is held as backup and the trace, with the comparison and awarded quote attached.
In the video- Archive
- PQ-1018 version 1, archived 11/03/2026 10:18, converted to order PO-1043
- To
- buyer01; planner03
- Subject
- PR-3318 — PO-1043 released to Arbor (2,061.40); Cobalt held as backup
- Sent
- 10:28 AM
- A · Arbor AES-Q-7712 PO-1043 · released
- B · Bellmont BI-40551 Not selected
- C · Cobalt CMF-2290 Held · backup
Rules, exceptions and controls
Rules to follow
- Bids are compared on landed total: quantity actually bought, per-unit price and freight (CMP-01).
- The award goes to the lowest landed total that meets the requested date with a valid quote.
- The agent recommends; buyer01 decides. Only the awarded bid becomes a purchase quote and PO.
- Missing values on a quote are listed as missing, never filled in.
- Unit costs on the purchase quote come from the vendor's quote, not item card defaults.
- Any order over 1,000.00 needs buyer01's approval in the ERP (APR-02).
When something doesn't match
- Freight billed separately: Bellmont adds 165.00 LTL, making the lowest unit prices 111.00 more expensive landed.
- No validity date: Bellmont BI-40551 marked MISSING, to be confirmed if it were chosen.
- Pack sizes and minimums: Cobalt sells flanges in boxes of 4 (min 2) and elbows in packs of 10, leaving 10 surplus fittings.
- Defaulted cost: the motor defaulted to 1,760.00 from the item card and was corrected to the quoted 1,840.00.
- Backup bid: Cobalt's quote is filed in Held quotes, not ordered and not replied to.
Controls and audit trail
- One comparison workbook with every bid normalized and the decision recorded.
- Recorded award from buyer01 before anything is entered in the ERP.
- Duplicate check for an existing purchase quote on the same requirement.
- Vendor PDF and comparison attached to the purchase quote so the trace carries to the order.
- Reopen-and-compare of the PO against the bid and award after approval; quantity received stays 0.
Practitioner tips
- Add a landed-total row to every comparison; it is the line that changes the answer most often.
- Count surplus from pack sizes, not just the extra cost; surplus fittings tie up cash and shelf space.
- Ask a vendor for a missing validity date before you award to them, not after.
- Put the vendor's quote number and your requirement number on the purchase quote so the order can be traced both ways.
- Check the unit cost on every line after entering items; defaults come from the item card, not the quote.
About this walkthrough
In the walkthrough, the agent normalizes three vendor quotes to landed totals, recommends Arbor at 2,061.40, waits for buyer01's award, enters purchase quote PQ-1018 with the quoted costs, converts it with Make Order to PO-1043, and verifies the approved PO against the bid before reporting.
Documented the way you'd train a new hire — and the same way an agent learns it.
Frequently asked questions
How do you compare vendor quotes fairly?
Put them on the same basis: the quantity you would actually buy after minimums and pack sizes, the unit price, freight, and the landed total. Then check each against the requested date and its validity.
How do you turn a vendor quote into a PO in Business Central?
Enter the awarded bid as a purchase quote (search for Purchase Quotes with Alt+Q), check the lines and costs against the vendor's PDF, then run Make Order on the quote to create the purchase order.
Why isn't the lowest unit price always the best quote?
Freight and pack sizes change the total. In the walkthrough Bellmont had the cheapest motor but billed 165.00 freight, so its landed total was 111.00 higher than Arbor's.
What should you do when a quote has no validity date?
Mark it missing in the comparison and confirm it with the vendor before awarding to them. Do not assume a validity period.
Who approves the award and the purchase order?
A person. In the walkthrough buyer01 awards the bid, and the PO created from it is approved separately in the ERP because it is over 1,000.00.
Can an AI agent compare vendor quotes and create the PO in Business Central?
This video is a conceptual walkthrough with generic stand-in screens and sample data, not a recording. It shows how an agent could normalize quotes and prepare the purchase quote and order, while a buyer makes the award and approves the PO.