Which source of supply provides a binding offer from a supplier to deliver a material or service at a specified price on a certain date in SAP S/4HANA?

The correct answer, which is the Quotation, represents a crucial element in the procurement process within SAP S/4HANA. A quotation provides a binding offer from a supplier that specifies the price, delivery terms, and the materials or services to be supplied by a certain date. This binding nature means that the supplier commits to honoring the terms laid out in the quotation, allowing the requesting organization to evaluate and compare offers from various suppliers before deciding on a purchase.

In contrast, other sources of supply like a Purchase Order are typically used to formalize the agreement after a quote is accepted, whereas a Purchase Requisition is merely a request for purchasing that does not include specific supplier commitments. A Contract is a longer-term agreement with negotiated terms and conditions but is not necessarily tied to a specific offer for a single purchase, which makes it different from the binding offer nature of a quotation. Thus, a quotation plays a key role in the initial stages of procurement by establishing binding terms from suppliers.