The Procurement Glossary » Acceptance

Acceptance

Contracts & Legal

Definition

The buyer's formal confirmation that delivered goods or services meet the agreed requirements, often triggering payment.

Explanation

Acceptance criteria and testing define when a deliverable is 'done'. Clear acceptance protects the buyer from paying for non-conforming work and gives the supplier a definitive completion point.

Example

Payment is released only after the software passes the acceptance tests defined in the SOW.

Related terms

• Statement of Work (SOW) — A document defining the scope, deliverables, timeline and acceptance criteria for a services engagement.
• Quality Assurance (QA) — The proactive processes that ensure goods and services will meet required quality standards.
• Milestone — A defined checkpoint in a project or contract, often tied to a deliverable and a payment.
• Warranty — A supplier's assurance that goods or services will meet defined standards, with a remedy if they do not.

Frequently Asked Questions

What is Acceptance?

The buyer's formal confirmation that delivered goods or services meet the agreed requirements, often triggering payment. Acceptance criteria and testing define when a deliverable is 'done'. Clear acceptance protects the buyer from paying for non-conforming work and gives the supplier a definitive completion point.

Can you give an example of Acceptance?

Payment is released only after the software passes the acceptance tests defined in the SOW.

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