A. What is Quotation?
Quotation means a written offer submitted by the Seller to the Buyer about the sale and purchase conditions of a Product which the Seller undertakes to sell to the Buyer during the validity time of the quotation of the Product.
B. How To Write A Quotation And What To Include On the Quotation?
Basically you can divide the quotation into 3 main parts :
- Quotation Header,
- Quotation Body
- Quotation Footer.
The following is some basic information that is commonly included in the quotation:
1. Quotation Header / Letterhead
- Your letterhead : Your company name, address, telephone & email and web address if available. In some countries, you must also included your business registration number.
- The words "Quotation", "Quote" ,"Estimate" or your preferred term clearly written towards the top of the page.
- If you are registered to bill and collect tax, you may also need to include your Tax Registration Number. This can usually be indicated just below the words "Quotation" or at your letterhead.
- The Quotation Number. This a running serial number that you maintain. You should only have one number per quotation issued. Hence, no 2 quotations should have the same number.
- The Quotation Date.
- Your Customer or Client Name and Address.
2. Quotation Body (Middle Part)
- A description of the goods you are selling/supplying, qty, unit of measure, unit price and total amount for individual items. It is important to be as specific as possible to avoid confusion and misunderstandings between the vendor and the customer. If it will help make things clearer, you may need to add drawings, product photos or specification etc in attached sheet or sheets.
3. Quotation Footer (Bottom)
- Total Amount of all individual items.
- If applicable, a tax amount and total after tax.
- Validity of the Quote. For example "This quote is valid for 60 days"
- Other comments you may have like delivery instructions, goods return policy, overdue payment policy etc. If necessary, you can also seek legal advise when drafting the terms and conditions for your quotation.
- International Commercial Terms (INCOTERMS) such as F.O.B, CIF, CFR, EXW, FCA etc. These price terms are used for Export and Import Trade.
- Your Payment Terms or how soon you expect to be paid. For example; 30% Down Payment and 70% balance on completion, Irrevocable L/C at Sight, Cash on Delivery etc.
- Your business authorised signature if necessary
- Options for customer to sign and stamp if your quote is accepted (this is optional)
C. Software For Creating A Quotation
You can use Ms Excel or spreadsheet program to create a quotation. However these programs have limitations in that you cannot easily generate a quotation lists report. Also searching for a quotation means searching files in your hard disk and opening them one at a time. If your folders are well organized, it will be no problem. It will be a big problem when you have many quotation files stored in your hard disk but you don't manage them well. You can overcome these limitations by using a designated quotation or invoicing software product such as Instant Invoice n CashBook 2007.
This Software is an excellent program that integrates quotation, invoice and inventory. It has 30-day-trial-version. Download Instant Invoice n CashBook 2007 .Try it before you buy.
D. Sample Quotation
Below is sample quotation layout created with
Instant Invoice n Cashbook 2007
Click Here for Quotation Sample