A Quotation provides an approximate cost for the products or services being offered to prospective or current customers.

In the course of a sale, a customer might ask for documentation outlining the products or services to be provided, including pricing and other terms. This document can be referred to by various names such as ‘Proposal,’ ‘Estimate,’ ‘Pro Forma Invoice,’ or simply a ‘Quotation’.

To access the Quotation list, go to:

Home > Selling > Sales > Quotation

A Quotation contains details about:

• The recipient of the Quotation
• The Items and quantities you are offering.
• The rates at which they are offered.
• The taxes applicable.
• Other charges (like shipping, insurance) if applicable.
• The validity of contract.
• The time of delivery.
• Other conditions.

Tip: Images look great on Quotations. Make sure your items have an image attached.

1. Prerequisites

Before creating and using a Quotation, it is advised that you create the following first:

• Customer
• Lead
• Item

2. How to create a Quotation

1. Go to the Quotation list, click on New.
2. Select if the Quotation is to a Customer or a Lead from the ‘Quotation To’ field.
3. Enter Customer/Lead name.
4. Enter a Valid till date after which the quoted amount will be considered invalid.
5. Order Type can be Sales, Maintenance, or Shopping Cart. Shopping Cart is for website shopping cart and is not intended to be created from here.
6. Add the Items and their quantities in the items table, the prices will be fetched automatically from Item Price. You can also fetch items from an Opportunity by clicking on Get Items from > Opportunity.
7. Add additional taxes and charges as applicable.
8. Save.

3. Features

3.1 Address and Contact

In this section there are four fields:

• Customer Address: This denotes the billing address of the customer.
• Shipping Address: The designated address for item shipment.
• Contact Person: If the customer is an organization, you can specify the individual to contact in this field.
• Territory: The geographical region associated with the customer.

The default setting is ‘All Territories‘.

3.2 Currency and Price List

You have the option to designate the currency for the quotation/sales order. If you specify a Pricing List, item prices will be retrieved from that list. Selecting ‘Ignore Pricing Rule‘ will disregard any pricing rules established in Accounts > Pricing Rule.

Read about Price Lists and Multi-Currency Transactions to know more.

3.3 The Items Table

• To expand this table, click on the inverted triangle located at the rightmost corner.
• When selecting an Item Code, the following details will be automatically retrieved: item name, description, any associated image, default quantity set to 1, and rates. Discounts can be added in the Discounts and Margin section.
• Within the Discount and Margin section, you have the option to include additional margin for profit or provide a discount, with both values being adjustable by either amount or percentage. The final rate will be displayed in the Rate section. You can also assign a specific Item Tax Template created for each item.
• Item weights, if specified in the Item master, will be retrieved accordingly.
• In the Warehouse and Reference section, the warehouse information will be fetched from the Item master, representing the location where your stock is stored.
• Under Planning, you can view the Projected quantity alongside the actual quantity available. Clicking on the ‘Stock Balance’ button will redirect you to a document where you can generate a stock report for the item.
• For website transactions, the Shopping cart and additional notes sections are relevant. Notes related to the item will be displayed here when added via a shopping cart.
• Utilizing the Page Break function will insert a page break just before this item when printing.
• You have the ability to insert rows below or above, duplicate, move, or delete rows within this table.

Tip: You can also download the items table in CSV format and upload it to another transaction.

The total quantity, rate, and net weight of all items will be displayed below the item table. Please note that the rate shown here is pre-tax.

3.3.1 Alternative Items

It is important to maintain the right order i.e. alternative item rows must follow a non-alternative item row (the item that they are alternatives to). Grouping will be done on this basis.

FSH-ROD-001, FSH-ROD-002 and FSH-ROD-003 are treated as a group to select from. In this way you can provide alternatives to your Customer/Lead and they can select from among those.

Selection of items to proceed with occurs after the Quotation is submitted. Visit the Selecting Alternatives section of this page to know more.

3.4 Taxes and Charges

To include taxes in your Quotation, you have two options: you can either choose a Sales Taxes and Charges Template or manually add the taxes in the Sales Taxes and Charges table.

The total taxes and charges will be summarized below the table. By clicking on Tax Breakup, you can view a breakdown of all the components and their corresponding amounts.

For automatic tax addition through a Tax Category, please visit this page.

Shipping Rule

A Shipping Rule helps set the cost of shipping an Item. The cost will usually increase with the distance of shipping. To know more, visit the Shipping Rule page.

3.5 Additional Discount

Apart from providing discounts per item, you have the option to apply a discount to the entire quotation within this section. This discount may be calculated based on either the Grand Total (after taxes and charges) or the Net Total (before taxes and charges). Additionally, the additional discount can be specified as a percentage or a fixed amount.

3.6 Payment Terms

At times, payments are not settled in one installment. Depending on the arrangement, half of the payment might be made prior to shipment, with the remaining half settled upon receipt of the goods/services. You have the option to include a Payment Terms template or manually input the terms within this section.

Read Payment Terms to know more.

3.7 Terms and Conditions

In sales or purchase transactions, specific Terms and Conditions may dictate how the supplier delivers goods or services to the customer. You can assign these Terms and Conditions to transactions, and they will be displayed when printing the document.

To know about Terms and Conditions, click here.

3.8 Print Settings

Letterhead

You can print your quotation/sales order on your company’s letterhead. Know more here.

‘Group same items’ will group the same items added multiple times in the items table. This can be seen when your print.

Print Headings

Quotations can also be titled as “Proforma Invoice” or “Proposal”. You can do this by selecting a Print Heading. To create new Print Headings, go to:

Home > Settings > Printing > Print Heading. Know more here.

3.9 More Information

• Campaign: A sales campaign can be linked to the quotation. A group of quotations can be included in a sales campaign.
• Source: A lead source type can be connected if quoting to a lead, whether originating from a campaign, a supplier, an exhibition, etc. Choose “Existing Customer” if quoting to a customer.
• Supplier Quotation: A supplier quotation can be linked for comparison with your current quotation to a buyer. This enables you to assess potential profit or loss by comparing the two.

3.10 Submitting the Quotation

A quotation is a transaction that can be submitted for consideration. Upon clicking “Save,” a draft version is saved, and upon submission, it becomes finalized. As you typically send this quotation to your customer or lead, it’s important to freeze it to prevent further changes after sending.

Once submitted, you can generate a Sales Order or a Subscription from the quotation using the Create button. In the top dashboard, you can navigate to the Sales Order associated with this quotation. If the transaction does not proceed as anticipated, you have the option to mark the quotation as lost by selecting the ‘Set as Lost’ button.

3.10.1 Selecting Alternatives

If the Quotation contains alternative items, you will be prompted to select from among alternatives while creating a Sales Order from the Quotation.

As you can see, FSH-ROD-002 and FSH-ROD-003 are alternatives to FSH-ROD-001 that are offered to the Customer.

One of these will be agreed upon and selected, following which the selected item will be mapped.

If simple items are involved (without alternatives), they will be mapped as usual.

The option to choose alternative items before mapping is solely accessible during the creation of Sales Orders from individual Quotations. When ‘Get Items From’ is utilized in a Sales Order or Sales Invoice to retrieve Quotation items, only non-alternative items will be retrieved, and there will be no prompt for item selection.