Comparative Statement of Quotations: Free Format and Example
The side-by-side sheet buyers use to compare quotes, with a worked example where the lowest rate finishes last.
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Template structure — template preview
| Particulars | Vendor A (Pune) | Vendor B (Ahmedabad) | Vendor C (Nashik) |
|---|---|---|---|
| Rate per kg (₹) | 62.00 | 60.00 | 61.00 |
| Basic value, 10,000 kg (₹) | 6,20,000 | 6,00,000 | 6,10,000 |
| Freight to Chakan plant (₹) | Included | 18,000 | 6,000 |
| Landed cost before GST (₹) | 6,20,000 | 6,18,000 | 6,16,000 |
| GST at 18%, ITC available (₹) | 1,11,600 | 1,11,240 | 1,10,880 |
| Payment terms | 60 days | 30 days | 30 days |
| Credit benefit vs 30 days, at 12% a year (₹) | 6,115 | 0 | 0 |
| Effective cost (₹) | 6,13,885 | 6,18,000 | 6,16,000 |
| Delivery after PO | 7 days | 15 days | 10 days |
| Mill test certificate | Yes | Yes | No |
| Quote valid until | 15 Oct | 30 Sep | 10 Oct |
| Rank | 1 | 3 | 2 |
A comparative statement of quotations (most purchase teams just call it the CS) is a table that puts every vendor's quote for the same requirement side by side. Rows are the things you're comparing: rate, freight, taxes, payment terms, delivery time. Columns are the vendors. At the bottom you rank them and write down who you picked and why. Auditors ask for it, approvers sign it, and six months later it's how you remember why you didn't go with the cheapest vendor.
The worked example above
A fabrication unit in Chakan, near Pune, needs 10 tonnes of MS angle (50 x 50 x 5 mm). The buyer sends an RFQ to three suppliers and gets three quotes back.
Vendor B in Ahmedabad has the lowest rate at ₹60 a kg. If you only looked at that number, B wins by ₹20,000 on basic value. But B quotes ex-works, and trucking 10 tonnes from Ahmedabad costs ₹18,000. Vendor A's rate includes delivery to the plant. Once freight is added, the gap between all three is only ₹4,000.
Then there's credit. A gives 60 days, the other two give 30. Money has a cost. If your business borrows at around 12% a year, having ₹6,20,000 for an extra 30 days is worth roughly ₹6,115 (₹6,20,000 x 12% x 30 / 365). Take that off A's price and A comes out cheapest, delivers fastest, and sends a mill test certificate. B, the lowest quote, finishes last.
Use your own cost of money
12% is only an example. Use the rate on your working capital loan, or whatever your finance team uses. If you have plenty of cash and no loan, the value of extra credit days is lower and the ranking might change.
What to put in each row
| Row | What to record | Why it matters |
|---|---|---|
| Item and specification | Exactly what was asked for, and anything a vendor changed | A cheaper quote for a lower grade isn't a cheaper quote |
| Quantity and unit | Same unit for every vendor | Kg against pieces can't be compared |
| Rate and basic value | Rate x quantity | The starting point, nothing more |
| Freight, packing, loading | Actual amount, or 'included' | Ex-works and delivered quotes look very different until this is added |
| GST rate and whether you can claim ITC | Rate, and a yes or no on input credit | If you can claim the credit, GST shouldn't decide the ranking. If you can't, it's a real cost |
| Payment terms | Advance, days of credit | Longer credit is worth money |
| Delivery time | Days after PO | A late cheap supply can stop a line |
| Warranty, certificates, test reports | Yes or no, with detail | Missing paperwork can mean rejection at inward inspection |
| Quote validity | Date | An expired quote isn't a price anyone has to honour |
| Deviations | Anything the vendor didn't agree to | Hidden exceptions come back at invoice time |
For imported items, or anything with customs duty and clearing charges, work out the landed figure first with the landed cost calculator and bring that number into the CS.
How to fill it in
- Before quotes come in, decide which rows count and whether anything is a must-have (a certificate, a delivery date). This stops people picking the rows that favour a vendor they already like.
- Enter every quote as received, including the ones that are obviously high. Leaving a vendor out makes the CS look thinner than the process was.
- Bring every quote to the same basis: same unit, same delivery point, same tax treatment.
- Add the cost of freight and credit so each vendor has a single effective figure.
- Mark vendors that fail a must-have. They drop out whatever their price.
- Rank the rest, write one or two lines on why the chosen vendor won, and send it for approval with the purchase requisition.
Mistakes that make a CS useless
- Comparing a delivered price with an ex-works price. This is the most common one, and it nearly always makes the far-away vendor look better than they are.
- Adding GST to the total when you can claim it back. It makes differences look bigger and says nothing about real cost.
- Leaving the reason for the decision blank. If you didn't pick the lowest, say why in plain words. "Vendor C has no mill test certificate and QA won't accept the material without one" is enough.
- Making the CS after the PO has gone out. At that point it's just paperwork, and auditors can usually tell.
- Only getting one real quote and two 'cover' quotes from friendly vendors. A CS is only as good as the competition behind it.
When to run an auction instead
A CS compares prices that were each sent once. Vendors never see where they stand, so nobody has a reason to sharpen their price. When the specification is clear and you have three or more qualified suppliers, a reverse auction lets them bid against each other live, and the result is your comparative statement, with a time stamp on every bid. See the reverse auction guide for how that works.
Doing it in Procupy
In Procupy, quotes come in through the RFQ or auction, so they're already in the same units and on the same terms. The comparison builds itself, you pick the vendor, and the choice goes into the approval with the quotes attached. There's no spreadsheet to copy numbers into, and the PO is raised from the winning quote.
Frequently asked questions
What is a comparative statement in purchase?
It is a table that compares quotations from different vendors for the same item, row by row, so the buyer can rank them and record why one was chosen. It's usually attached to the purchase approval.
How many quotations are needed for a comparative statement?
Most company purchase policies ask for at least three quotes above a set value. The exact number and threshold are set by your own policy, so check it. For small repeat buys a rate contract often replaces the need for fresh quotes each time.
Should GST be included in a comparative statement?
Show it, but if you can claim input tax credit, rank vendors on the value before GST. If you can't claim the credit, for example on some items that are blocked under GST, the GST is a real cost and should be part of the comparison.
Does the lowest quote always have to win?
No. The lowest quote only wins if it meets the specification and the effective cost after freight, credit terms and other charges is still lowest. When you pick someone else, write down the reason on the statement.