B2B transactions pass through sales, procurement, finance and operations. The same document may be handled by several teams, so each term needs a clear and consistent meaning.
This guide provides short definitions for common terms. Visit the main B2B glossary for dedicated explanations and examples.
Sales and quotation terms
Request for quotation (RFQ): A document a buyer sends to potential suppliers to request prices and commercial terms for defined goods or services.
Sales quotation: A seller's proposed products, quantities, prices and terms. It is normally issued before an order is confirmed.
Line item: One product, service or charge recorded separately on an RFQ, quotation, purchase order or invoice.
Quote validity period: The length of time during which the price and terms in a quotation remain available for acceptance.
Quote-to-order conversion rate: The percentage of issued quotations that become confirmed customer orders.
Businesses that receive or issue a high volume of requests can use RFQ software to organize requests and supplier responses. Sellers can use sales quotation software to prepare and track customer quotations.
Procurement terms
Purchase requisition: An internal request for approval to purchase goods or services.
Purchase order (PO): A document a buyer sends to a supplier to confirm the products, quantities, prices and terms it wants to order.
Three-way matching: The process of comparing a purchase order, receiving record and supplier invoice before approving payment.
Maverick spend: Purchasing that takes place outside approved suppliers, contracts or procurement procedures.
Procure-to-pay: The workflow from identifying a purchasing need through ordering, receiving, invoice approval and supplier payment.
Procurement software can help buying teams send RFQs, compare supplier quotations and keep purchasing documents connected.
Pricing terms
Markup: The difference between cost and selling price, expressed as a percentage of cost. Read the complete markup definition and formula.
Gross margin: The percentage of selling price left after subtracting the direct cost of the sale.
Tiered pricing: A model in which different rates apply to different portions of a quantity or usage total. Read the tiered pricing guide.
Dynamic pricing: A model that adjusts prices in response to defined inputs such as cost, demand, inventory or delivery requirements. Read the dynamic pricing guide.
Landed cost: The complete cost of obtaining and delivering a product, including relevant freight, duties, insurance and handling charges.
Invoice and payment terms
Invoice: A document requesting payment for goods or services supplied under an agreed transaction.
Payment terms: The conditions that specify when and how payment is due.
Remittance advice: Information a buyer sends to explain which invoices or balances are covered by a payment.
Recipient: The person or business designated to receive a payment.
Currency Account: An account used to receive, hold or send funds in a supported currency, subject to the provider's eligibility and account structure.
Quotable Payments connects payment tools with Quotable AI's broader quotation and transaction workflow.
Logistics terms
Bill of lading: A carrier-issued shipping document that records the goods being transported and the terms of carriage.
Incoterms: Standard trade terms published by the International Chamber of Commerce that assign responsibilities between buyers and sellers in international transactions.
Fulfillment: The process of preparing, dispatching and delivering an order.
Proof of delivery: A record confirming that goods were delivered to the intended destination or recipient.
