Sourcing DeskHow to Keep Currency and Price Basis Explicit in an RFQ
Your RFQ should state the quote currency up front, name the price basis as an Incoterms 2020 rule together with its named place, and ask what the unit price covers and leaves out. Record the validity window and proposed payment terms separately. These fields make supplier replies easier to compare; if a quote uses a different currency or omits a field, mark that difference for confirmation rather than assuming the numbers share one basis.
Why two quotes are often not measuring the same thing
A quote can differ from another one for reasons that have nothing to do with who is cheaper. One may be priced in a different currency. One may stop at a different point in the journey, so it excludes a cost the other one includes. Neither is wrong; they are just not yet comparable.
The Incoterms 2020 rules (International Chamber of Commerce) are the standard way to make that stopping point explicit. Per the ICC, the rules cover delivery, carriage, risk and cost allocation under the specific rule and named place. Two things follow for your RFQ:
- The named place is part of the rule, not a footnote. Cost allocation is defined under the rule and the place. A rule with no place leaves the split undecided.
- The rule allocates cost; it does not set payment terms and does not prove quality. Per the same scope, the rules do not validate supplier capability or product quality. Payment terms, quality requirements and inspection expectations are separate fields you have to ask for in your own words.
The commercial-terms block to paste into your RFQ
Put this near the top of the request, before the specification lines. Keep the brackets; the supplier fills them.
Quote currency: [ ]
Unit price: [ ] per [unit of measure]
Quantity this price applies to: [ ]
Price basis: Incoterms 2020 rule [ ] at named place [ ]
Included in the unit price: [ ]
Excluded from the unit price: [ ]
Ancillary charges (tooling, samples, freight, documentation): [amount] [currency] each
Quote valid until: [ ]
Payment terms: [ ]
What each field protects you against
| Field | What to record | What goes wrong when it is blank |
|---|---|---|
| Quote currency | One currency for the whole response | Each supplier answers in their own, and nothing can be compared without a rate you would have to invent |
| Unit price and unit of measure | Price per piece, per set, per kilogram — named | A price with no unit means different things to different readers |
| Quantity this price applies to | The quantity band the price is calculated for | A price quoted for one volume is compared against a price quoted for another |
| Incoterms 2020 rule + named place | Rule and place together | The cost split between buyer and seller is left undecided |
| Included / excluded | Plain-language lists | A cost one supplier included is silently missing from another's number |
| Ancillary charges, with currency | Each charge labelled with its own currency | Tooling or sample charges arrive in an unlabelled currency |
| Validity window | How long the quote holds | You compare a fresh number against a stale one |
| Payment terms | Stated separately from the delivery rule | A delivery rule is mistaken for agreement on payment |
Where to place these fields
A suggested structure, offered as editorial drafting advice rather than a requirement:
- Commercial terms first. Currency, price basis, validity and payment terms sit above the specification, so a supplier reads them before pricing anything.
- Repeat the currency on every line item row. A header currency is easy to overlook once a table gets long; repeating it keeps every number labelled.
- Ask for confirmation, not just answers. Close with: "Confirm that your quote uses the currency, price basis, named place and validity window stated above, or state the ones you used instead."
- Keep ancillary charges in their own rows. Tooling, samples and freight are frequently quoted separately from the unit price; give them their own lines with their own currency labels.
When a supplier replies in a different currency
Do not convert it yourself. A rate you looked up at a moment of your choosing turns their number into your number, and any later comparison inherits that choice. Suggested handling instead:
- Ask the supplier to restate the quote in the currency you named, or to state clearly which currency and price basis they used.
- If they cannot restate it, record the quote exactly as given, currency label attached, and mark it as not yet comparable.
- Keep the currency next to every figure in your comparison sheet, including freight, tooling and sample lines.
- Treat a mixed-currency response as an incomplete response and send one follow-up asking for the currency and basis fields to be completed.
How to tell a complete answer from an unfinished one
Worth treating as complete: the currency is named on the header and on each line; the rule and the named place are both stated; included and excluded costs are listed; the validity window and the payment terms are present; ancillary charges carry their own currency.
Worth one more question before you compare: a rule with no named place; a figure with no unit; a currency that appears on the unit price but not on the tooling or freight lines; "as discussed" where a stated term should be; no validity window.
These are editorial drafting suggestions for your commercial documents. They are not legal, customs or regulatory advice, and completing this worksheet is a document check on your own request — not a certification of any supplier.
Next action
Copy the commercial-terms block into your RFQ and fill each known field before you send it to a supplier. Check currency, the named place and any separate charges against the supplier's written answer. The on-site Sourcing Desk worksheet can prepare a draft locally; it does not send a brief or return a marked-up version.