Business buyers rarely check out as a single person with a credit card. They may shop from an account-specific catalog, use negotiated prices, request internal approval and submit a purchase order against payment terms. The supplier must preserve those rules from catalog through invoice. This guide follows a business order from account setup to procurement handoff, then covers credit and order constraints. Tax treatment, legal effect and payment timing depend on the account, contract and jurisdiction.
🧭 Jump to a term
Set up the buying relationship: B2B ecommerce · Company account · Buyer approval workflow · Account-specific catalog
Agree on price and payment: Contract pricing · Price list · Net payment terms · Trade credit · Credit limit
Turn procurement into an order: Purchase order (PO) · Request for quotation (RFQ) · Quote-to-order · PunchOut catalog · Requisition · Minimum order value (MOV) · Order increment · Tax-exempt account
⭐ Know these first
Start with B2B ecommerce, Contract pricing, Net payment terms, Purchase order (PO), PunchOut catalog. Then follow the grouped learning order below.
📎 How to read this page
What it means gives the precise meaning. Operator translation gives the version you might hear in a real ecommerce meeting. In real life shows an illustrative example. Watch out and the confusion boxes show where a familiar term can mislead.
📈 Read the relationships first
These combinations are diagnostic hypotheses, not proof of causality. Compare the same period and scope, then investigate the mechanism.
👥 Company buyers ↑ + orders missing approvals ↑
Usually means: Permissions or workflow thresholds may not match the organization’s policy. Check next: Review roles, spend rules and locations.
💰 Contract prices ↑ + margin ↓
Usually means: Discount precedence, price-list versions or freight may change net economics. Check next: Reconcile the applied terms.
🧾 Requisitions ↑ + purchase orders flat
Usually means: Requests may be waiting in approval or procurement handoff. Check next: the queue and owner.
📦 Order size ↑ + credit availability ↓
Usually means: Open invoices or pending orders may consume the account’s limit. Check next: Confirm exposure and terms with the credit owner.
Set up the buying relationship
01 · 🟢 Core
B2B ecommerce = Digital commerce between businesses
🧠 What it means
B2B ecommerce supports business purchasing through digital catalogs, account pricing, approval rules and ordering workflows. Tax, payment and delivery settings can differ from consumer commerce.
💬 OPERATOR TRANSLATION
“A company buyer orders supplies under their business account.”
🛍️ In real life
A business buyer places a bulk online order.
🔗 Related: Company account · Buyer approval workflow · Account-specific catalog · ↑ all terms
02 · 🔵 Operations
Company account = Shared commerce profile for a business organization
🧠 What it means
A company account represents an organization and can include locations, buyers, permissions, catalogs and payment settings.
💬 OPERATOR TRANSLATION
“The account lets several employees buy under one company relationship.”
🛍️ In real life
A company adds buyers at two locations to one supplier portal.
🔗 Related: B2B ecommerce · Buyer approval workflow · Account-specific catalog · ↑ all terms
03 · 🔵 Operations
Buyer approval workflow = Steps for reviewing and authorizing a purchase
🧠 What it means
An approval workflow routes a requisition or order to designated reviewers based on rules such as role, amount or location.
💬 OPERATOR TRANSLATION
“An order over a buyer’s limit routes to a manager before submission.”
🛍️ In real life
A manager reviews a purchase request in a workflow.
🔗 Related: B2B ecommerce · Company account · Account-specific catalog · ↑ all terms
04 · 🔵 Operations
Account-specific catalog = Products or offers available to a particular business account
🧠 What it means
An account-specific catalog controls which products, prices or terms a business buyer sees. Availability depends on account assignment and catalog configuration.
💬 OPERATOR TRANSLATION
“A distributor sees the parts and pack sizes contracted for its account.”
🛍️ In real life
Two business buyers see different products in their assigned catalogs.
🔗 Related: B2B ecommerce · Company account · Buyer approval workflow · ↑ all terms
Agree on price and payment
05 · 🟢 Core
Contract pricing = Prices agreed for a buyer under a commercial agreement
🧠 What it means
Contract pricing applies negotiated prices under stated customer, product, volume, time and currency conditions.
💬 OPERATOR TRANSLATION
“A buyer’s account shows the agreed unit price for its annual contract.”
🛍️ In real life
A supplier and customer agree on negotiated product prices.
🔗 Related: Price list · Net payment terms · Trade credit · ↑ all terms
06 · 🔵 Operations
Price list = Defined set of prices for products or services
🧠 What it means
A price list contains prices for a defined customer, region, channel, currency or period. Confirm precedence when multiple lists or discounts apply.
💬 OPERATOR TRANSLATION
“A distributor account uses its assigned regional price list.”
🛍️ In real life
A buyer compares assigned business prices.
🔗 Related: Contract pricing · Net payment terms · Trade credit · ↑ all terms
07 · 🟢 Core
Net payment terms = Agreed time allowed to pay an invoice
🧠 What it means
Net terms specify the number of days in which payment is due, commonly measured from invoice date or another defined trigger. Contract wording governs.
💬 OPERATOR TRANSLATION
“Net 30 means payment is due 30 days after the agreed invoice-date basis.”
🛍️ In real life
The buyer checks an invoice due date against negotiated terms.
🔗 Related: Contract pricing · Price list · Trade credit · ↑ all terms
08 · 🔵 Operations
Trade credit = Supplier allows a business buyer to pay later
🧠 What it means
Trade credit lets a business purchase now and pay later under approved terms and credit conditions. It creates receivables and nonpayment risk for the supplier.
💬 OPERATOR TRANSLATION
“A supplier ships an approved order and invoices the buyer for later payment.”
🛍️ In real life
A seller offers a business buyer deferred payment.
🔗 Related: Contract pricing · Price list · Net payment terms · ↑ all terms
09 · 🔵 Operations
Credit limit = Maximum credit exposure approved for an account
🧠 What it means
A credit limit caps the supplier’s approved unpaid exposure for an account, subject to policy and review. Open orders and outstanding invoices may consume capacity.
💬 OPERATOR TRANSLATION
“An account can place another order only if the resulting exposure stays within its limit.”
🛍️ In real life
A credit manager checks an account’s available purchasing capacity.
🔗 Related: Contract pricing · Price list · Net payment terms · ↑ all terms
Turn procurement into an order
10 · 🟢 Core
Purchase order (PO) = Buyer’s formal request to purchase specified goods or services
🧠 What it means
A purchase order documents a buyer’s requested items, quantities, prices and terms. Acceptance and legal effect depend on the parties’ process and agreement.
💬 OPERATOR TRANSLATION
“The buyer sends a PO for 100 replacement components at the contracted price.”
🛍️ In real life
A business buyer submits an online purchase order.
🔗 Related: Request for quotation (RFQ) · Quote-to-order · PunchOut catalog · ↑ all terms
11 · 🔵 Operations
Request for quotation (RFQ) = Buyer invitation for suppliers to price a defined requirement
🧠 What it means
An RFQ asks one or more suppliers to quote against specified goods, quantities, requirements and timing. It is a procurement request, not necessarily a purchase commitment.
💬 OPERATOR TRANSLATION
“A buyer requests comparable quotes for 500 units with a delivery deadline.”
🛍️ In real life
A procurement team invites suppliers to quote.
🔗 Related: Purchase order (PO) · Quote-to-order · PunchOut catalog · ↑ all terms
12 · 🔵 Operations
Quote-to-order = Process of converting an approved quote into an order
🧠 What it means
Quote-to-order connects a negotiated or approved quote to a purchase order or checkout, preserving agreed items, quantities, prices and terms.
💬 OPERATOR TRANSLATION
“The buyer accepts the quote and converts its line items to a confirmed order.”
🛍️ In real life
A buyer turns an approved supplier quote into an online order.
🔗 Related: Purchase order (PO) · Request for quotation (RFQ) · PunchOut catalog · ↑ all terms
13 · 🟢 Core
PunchOut catalog = Supplier catalog opened from a buyer’s procurement system
🧠 What it means
PunchOut lets a buyer launch a supplier catalog from a procurement system, select items and return the cart for internal requisition or purchase-order steps. Integration standards vary.
💬 OPERATOR TRANSLATION
“An employee shops a supplier’s catalog, then returns selected items to the company procurement workflow.”
🛍️ In real life
A procurement catalog links to a supplier shop and returns.
🔗 Related: Purchase order (PO) · Request for quotation (RFQ) · Quote-to-order · ↑ all terms
14 · 🔵 Operations
Requisition = Internal request to buy goods or services
🧠 What it means
A requisition is an organization’s internal purchase request, commonly reviewed before a purchase order is issued.
💬 OPERATOR TRANSLATION
“An employee requests approval to buy replacement equipment.”
🛍️ In real life
An employee creates a request for manager review.
🔗 Related: Purchase order (PO) · Request for quotation (RFQ) · Quote-to-order · ↑ all terms
15 · 🔵 Operations
Minimum order value (MOV) = Lowest order value accepted under a seller’s rule
🧠 What it means
MOV is a minimum merchandise or order value required to submit or receive an order, subject to the seller’s terms. It differs from minimum quantity.
💬 OPERATOR TRANSLATION
“A buyer must reach $500 in eligible goods before submitting the wholesale cart.”
🛍️ In real life
The basket approaches a stated purchasing threshold.
🔗 Related: Purchase order (PO) · Request for quotation (RFQ) · Quote-to-order · ↑ all terms
16 · 🔵 Operations
Order increment = Required quantity step for ordering a product
🧠 What it means
An order increment sets the quantity steps a buyer must use, often because products ship in case packs or multiples.
💬 OPERATOR TRANSLATION
“A product with increment 12 can be ordered as 12, 24 or 36 units.”
🛍️ In real life
A buyer selects quantities in fixed pack increments.
🔗 Related: Purchase order (PO) · Request for quotation (RFQ) · Quote-to-order · ↑ all terms
17 · 🔵 Operations
Tax-exempt account = Business account with validated exemption treatment
🧠 What it means
A tax-exempt account stores documentation or status used to apply eligible tax treatment. Exemption scope, product eligibility and jurisdiction rules must be verified.
💬 OPERATOR TRANSLATION
“A buyer supplies valid resale documentation for an eligible purchase in a covered jurisdiction.”
🛍️ In real life
A business account applies verified tax-exempt purchasing status.
🔗 Related: Purchase order (PO) · Request for quotation (RFQ) · Quote-to-order · ↑ all terms
🔀 Requisition vs purchase order
A requisition is usually an internal request. A purchase order is the buyer’s formal external request to purchase.
🔀 Trade credit vs net terms
Trade credit is the supplier’s decision to allow deferred payment. Net terms state the payment deadline under the agreement.
🔀 Minimum order value vs order increment
MOV sets an order-value floor. An increment sets allowed quantity steps. Both can apply to the same basket.
🔀 Company account vs individual buyer
The account represents the organization and its commercial setup. An individual buyer acts within assigned roles and permissions.
🤔 Still confused?
Follow this thread: B2B ecommerce → Contract pricing → Purchase order (PO). That sequence moves from the basic object or relationship to the decisions and checks it supports.
Sources and scope
Primary documentation checked on 27 September 2026. Platform features and eligibility can change; examples and cartoon situations are illustrative.
