FinTech Glossary

Definition

A quotation is a formal document issued by a seller that specifies the price, terms, and conditions for providing goods or services, serving as a reference before a purchase decision is made.

Role of Quotations in Procurement

Quotations help businesses compare vendor pricing, negotiate terms, and estimate costs before committing funds. They are commonly used in procurement processes to maintain transparency, budget discipline, and informed decision-making.

Why Quotations Improve Spend Control

By reviewing quotations before issuing purchase orders, businesses prevent unplanned expenses and cost overruns. Quotations create a baseline for approvals and help align procurement decisions with budgets and financial policies.

Link to Payments and Expenses

When quotations are connected to purchase orders, invoices, and payments, businesses gain end-to-end spend visibility. This linkage helps finance teams verify that payments align with agreed terms, simplifies reconciliation, and strengthens audit trails.