Two quotations can look different even when their stated payable amounts are the same. One separates price, tax and delivery; another includes tax in its headline figure. A foreign-currency quote adds another comparison choice. The assistant should organise those differences, while the finance owner defines the rules that make the totals meaningful.
This article provides a proposed cost-comparison template using entirely fictional amounts. It does not give a VAT ruling, decide whether tax is recoverable or estimate import duties and other unknown charges. A transparent incomplete result is more useful than a polished landed-cost number built from assumptions nobody approved.
Choose the comparison basis with the finance owner
Ask whether the decision uses stated gross payable, an approved net-cost basis or another defined measure. Those are different calculations. Record the basis and its owner before evaluating offers, and apply it consistently to comparable scope.
A supplier's tax presentation is evidence to extract, not a legal determination. Keep the stated tax amount, inclusive or exclusive wording and supporting reference. If the document is silent or contradictory, request clarification through procurement rather than applying a familiar rate automatically.
Also confirm which charges belong in the selected comparison: delivery, insurance, installation or other stated items. Do not add unsupported charges to create a complete-looking total. Scope completeness is a separate gate; an accurately calculated price for omitted work is still not a like-for-like offer.
Extract amounts without losing their labels
Store amount, currency, purpose, inclusive or exclusive status and source location together. A number without its label can become a subtotal, tax amount or final total depending on where it appears. Preserve the supplier's wording and document version.
Microsoft's Document Intelligence overview describes text and table extraction, with prebuilt schemas and examples such as invoice-date and subtotal types. That supports structured document preparation, but does not establish correct quotation tax treatment or guarantee that a particular quote layout is handled accurately. Source: Azure Document Intelligence overview
Check extraction against the actual quote. A quotation is not automatically equivalent to a tax invoice, and a typed currency value does not prove that the selected total includes delivery. Treat unreadable notes or missing pages as explicit coverage gaps.
Transparent cost-comparison template
Use this complete fictional fixture. The finance owner has approved comparing stated gross-payable amounts for the same required scope. All tax amounts are supplied fixture values, not asserted legal rates or tax conclusions. The currency rate is an invented test rate of R20 per EUR1, with no claim about a real market rate.
| Quote | Stated components and currency | Fixture calculation | Comparison disposition |
|---|---|---|---|
| A | Item amount R1,000 excluding stated tax of R150; delivery R100 excluding stated delivery tax of R15 | R1,000 + R150 + R100 + R15 = R1,265 | Complete stated gross-payable fixture under the approved basis |
| B | Item amount R1,150 stated tax-inclusive; delivery R115 stated tax-inclusive | R1,150 + R115 = R1,265 | Complete stated gross-payable fixture; same result as A |
| C | Item EUR60 and delivery EUR5, both stated inclusive of applicable quoted tax | EUR65 × R20 per EUR1 = R1,300 | Complete fixture conversion using the approved test rate and basis |
| D | Item R900; tax presentation and delivery charge absent | No complete comparison total | Hold for missing evidence; R900 is not treated as the final payable amount |
For each real candidate, record supplier and quote reference, version, scope-gate status, component amount, currency, tax wording, delivery treatment, source location, approved comparison basis, exchange-rate source and date, rate direction, calculation version, unresolved charges and reviewer. Do not combine an approved amount from one version with delivery terms from another without a documented reconciliation.
Calculation rules: use verified supplied components and the finance-approved treatment. Do not add tax twice to an inclusive figure. Convert with an explicit direction and approved precision rule. Keep unknown charges separate; a partial known amount is labelled partial rather than a complete landed cost. Tax recoverability, legal treatment and charges not evidenced in the quote require the appropriate qualified review.
Review conclusion for the fixture: A and B have equal stated gross-payable totals. C is R35 higher under the invented rate, because R1,300 minus R1,265 equals R35. D cannot enter the complete-cost comparison. This establishes the fixture arithmetic only and does not select a supplier.
Acceptance cases: exclusive components with separate stated tax; inclusive components; a known foreign-currency total; missing delivery; contradictory tax wording; and duplicate quote versions. Verify calculations deterministically, preserve unknowns and inspect the selected source version. An extraction that passes its schema but mislabels an inclusive amount must fail review.
The template is accepted when the finance owner approves the basis, each component is traceable and the reviewer can reproduce every result. A held quote becomes comparable only after its required evidence and scope questions are resolved.
Keep schema validation separate from financial interpretation
OpenAI's Structured Outputs guide supports constrained fields and refusals. A schema can separate amount, currency, tax status, delivery and uncertainty. It does not determine tax obligations or prove that the extracted values are correct. Source: OpenAI structured outputs
Calculate through deterministic application rules after validating the inputs. Let the assistant explain the resulting comparison and its limitations, but do not let an explanatory paragraph introduce an extra fee, rate or tax assumption. A refusal or unusable extraction should leave the affected quote held.
The source record should preserve the exact amount labels. If the supplier writes plus applicable taxes without amounts, record the phrase and ask for the approved clarification. Do not assume the missing figure from another supplier's offer.
Control exchange-rate and rounding choices
Record who approves the rate, where it comes from, the date or period and whether it represents the comparison convention rather than a promised settlement amount. An indicative conversion may differ from actual payment because of the chosen provider and charges. Do not invent those differences or silently include them in the total.
Check the direction explicitly. R20 per EUR1 means multiply the EUR amount by twenty in the fictional example. Reversing the rate would produce a different result even with correct arithmetic. Apply the approved precision and rounding rule consistently and retain enough detail to reproduce it.
If the actual conversion source is unavailable, hold the converted comparison or present the foreign amount separately under an approved rule. A model's remembered rate is not a current financial input.
Work through normal, missing and duplicate quotes
In the hypothetical normal case, A and B provide all stated components for the common scope. The application calculates R1,265 for each and explains their different presentations. The reviewer confirms the labels and basis without making any tax-deductibility conclusion.
In the missing-information case, D's lower headline number lacks tax and delivery treatment. The report shows a partial stated item amount and the exact clarification needed. It does not rank D as cheapest on a complete-cost basis.
In a duplicate-version case, one PDF contains an updated item price while an earlier email contains delivery terms. The owner establishes whether those terms still apply to the current offer. Until that relationship is approved, preserve the conflict instead of manufacturing a combined quotation.
Keep recommendations and purchasing actions separate
OpenAI's function-calling guide distinguishes a model request, application execution and returned output. A comparison explanation is not purchasing approval or a changed finance record. Any subsequent order or supplier message needs the organisation's own authority and verified execution process. Source: OpenAI function calling
FAQ about comparing tax, delivery and currency
Can the agent decide whether quoted VAT is recoverable?
No. This proposed workflow records stated amounts and applies accountant-approved comparison rules. Recoverability and the applicable tax treatment need the responsible qualified review and supporting evidence.
Should unknown delivery be entered as zero?
Not merely to complete the table. Record it as unknown and request clarification. A zero requires evidence or an explicitly approved comparison assumption, clearly labelled rather than presented as the supplier's charge.
Does a converted quotation show the amount we will pay?
It shows the result under the selected comparison rate and rules. Actual settlement can depend on facts not represented in the quote. Keep that distinction visible and do not claim a complete landed cost from partial evidence.
If your business needs help defining this process, explore Document processing, the wider AI automation services, and our custom-agent workflow guide. The agents and automation comparison and custom AI agent glossary explain the terms. To discuss your records and approval rules, get in touch.