In this assignment I am going to identify and explain the various documents that a business needs to prepare and used in its day to day activities and transactions.
In first place, the price quotation is a document that an organisation submits to one or more potential clients enquiring for the price of a product or service. Typically, the price quotation presents the list of prices customarily used when the requesting organisation's requirements are more complex. Therefore, we identify this document as a formal statement of promise, submitted usually in response to a request for quotation by potential supplier, to supply the goods or services required by a buyer, at specified prices, and within a specified period. A quotation may also contain terms of sale and payment, and warranties.
If the case of the requesting organisation does not wish to accept the price quotation of a certain good or service, it may decline it or request a new price quote as the quotation is the formal quote from the seller to the buyer for a quantity of goods, at a specific price, to be delivered at a specific time. The quotation is provided within the context of a validity time frame, and purchase orders placed during the quotations validity are accepted for delivery at the price stated.
Therefore, we can define the price quotation as a proposal to the buyer from the seller for the cost of goods that includes prices, quantities, terms and conditions, delivery, and shipping charges. In this way, the purpose of the price quotation is to provide the buyer with a formal commitment of prices on specific quantities of goods for a specific period of time.
Secondly, a Purchase order is document issued by the buyer to the seller, indicating types, quantities, and agreed...