Sample Quotation or Estimate - What is a quotation ? What To Put On It And
What is a quotation and when to use it ?
In business, a quotation is a document that a vendor or service provider
would give to a customer to describe specific goods and services that they
may provide and its cost. Besides the term
quotation, it can also be referred by other terms like Bid, Quote, Estimate,
Tender & Proposal .
You would normally prepare a quotation or estimate upon request by a
How To Write A Quotation or Estimate And What To Include On It
Basically you can divide the quotation into 3 main parts : The Header, Body
and Footer. The following is some basic information that you can include in
1. Quotation Header (Top Part)
Your letterhead : Your business 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
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 Payment Terms or how soon you expect to be paid.
Some example include : "COD", "Cash", "Cash on
"30 days", "Full Payment on Delivery", "50% To Start, balance on
completion ". The payment terms can also be placed on the footer if
Your Customer or Client Name and
2. Quotation Body (Middle Part)
A description of the goods you are supplying, quantity, unit of measure,
price per unit and total amount for individual items. In the case of
services, your scope of work and 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 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
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.
Your business authorised signature if
Options for customer to sign and stamp if
your quote is accepted (this is optional)
Tools For Creating A Quotation
You can use any word processor or spreadsheet
software 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. You can overcome these
limitations by using a designated quotation or invoicing software product such
as our own Instant Invoice 2007 or
Ezy Invoice 7.
Below are some sample quotation layouts created with our
software Instant Invoice 2007 and
Ezy Invoice 7.
Related Article :
Credit Note Or
Credit Memo, Sample invoice .
Copyright © 2008 EzySoft Developments
(Published : 17th/Mar/2008, Updated : 17th/Mar/2008)
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