Quotation
A Quotation is a formal price offer sent to a potential customer. It lists the goods or services you propose to provide, along with prices, terms, and validity period.
Creating a Quotation
- Go to Selling > Quotation and click New.
- Select the Customer (or Lead if the customer is not yet created).
- Set the Transaction Date and Valid Till date.
- Add items:
- Item Code, Description, Quantity, Rate
- Add Taxes and Charges (VAT).
- Enter Terms and Conditions.
- Click Save and Submit.
Quotation Status
| Status | Description |
|---|---|
| Draft | Being prepared |
| Open | Sent to customer, awaiting response |
| Replied | Customer has responded (accepted/declined) |
| Ordered | Converted to Sales Order (won) |
| Lost | Quotation lost to competitor |
| Expired | Past the Valid Till date |
| Cancelled | Quotation cancelled |
Converting to Sales Order
When the customer accepts the quotation:
- Open the submitted Quotation.
- Click Create > Sales Order.
- Review the Sales Order (items and pricing are pre-filled).
- Submit to confirm the order.
The Quotation status changes to Ordered (Won).
Key Features
- Validity Period: Set an expiry date after which prices are not guaranteed
- Terms and Conditions: Include your payment and delivery terms
- Price Lists: Use different price lists for different customers
- Discounts: Apply percentage or fixed discounts per item or on total
- Tax Calculation: Automatic VAT calculation based on customer tax category
- Email: Send quotation directly to customer via email
Quotation vs Sales Order
- Quotation: A proposal — not binding. Does not affect inventory or accounting.
- Sales Order: A confirmed order — binding. Can affect inventory (reservation) and triggers delivery and invoicing.
Lost Quotation Analysis
When a quotation is marked as Lost, record:
- Lost Reason: Too expensive, chose competitor, no budget, etc.
- Competitor: Who won the business
- Remarks: Additional context
This data helps improve future pricing and sales strategies.