Commercial terms
Pricing, purchase orders, payment and Incoterms.
- All-units quantity discounts
How all-units price breaks differ from incremental tiers, with explicit thresholds, units and purchase-charge arithmetic.
- Blanket purchase orders
Blanket orders, individual releases and jurisdiction-specific agreements: spending limits, dates and documentary meaning.
- Consignment inventory
Consignment stock for resale or production use, separated from custody, replenishment responsibility, payment and accounting control.
- Customer-owned tooling
Tool ownership, supplier custody, permitted use and source-specific responsibilities for physical manufacturing tools.
- Customer-supplied material
Customer-furnished stock and components: identity, custody, quantity reconciliation, service acceptance and source-specific disposal limits.
- Deposits and progress payments
Payment bases, milestone events, advance credits and retention, with bounded procurement examples and illustrative arithmetic.
- Early-payment discounts
Payment-timing discounts, eligible amounts, deadline definitions and conditional arithmetic, with source-specific documentary limits.
- Graduated quantity discounts
Incremental quantity tiers, threshold conventions and the difference between marginal rates, blended averages and total goods charges.
- Incoterms CIF — Cost, Insurance and Freight
CIF under Incoterms 2020: on-board delivery and risk transfer, seller-paid freight and insurance, documentary scope and contractual limits.
- Incoterms DAP
Delivered at Place under Incoterms 2020: destination delivery, unloading, customs, risk exceptions and contractual limits.
- Incoterms DDP
Delivered Duty Paid under Incoterms 2020: destination delivery, customs responsibility, unloading and territorial limits.
- Incoterms EXW — Ex Works
EXW under Incoterms 2020: delivery before loading, cost and risk allocation, export-clearance limits, and differences from FCA.
- Incoterms FCA
FCA under Incoterms 2020: delivery points, risk, carriage costs, clearance and transport documents.
- Incoterms FOB
FOB under Incoterms 2020: onboard delivery at the shipment port, risk exceptions, carriage, costs and documentary limits.
- Net payment terms
Net-day payment periods, invoice and acceptance clocks, and the difference between a due date, payment and a discount deadline.
- Purchase-order releases
Individual orders and delivery instructions under covering agreements, with distinct forecast, limit and revision meanings.
- Quote validity periods
How a quoted-offer validity period relates to its issue date, price, delivery, acceptance and revisions, with supplier and sealed-bid examples.