Sample Quotation or Estimate – What is a quotation ? What To Put On It And Example Quotations
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 customer.
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 your quote.
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 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 Payment Terms or how soon you expect to be paid. Some example include : “COD”, “Cash”, “Cash on Delivery”, ”30 days”, “Full Payment on Delivery”, “50% To Start, balance on completion “. The payment terms can also be placed on the footer if preferred.
Your Customer or Client Name and Address.
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 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.
Your business authorised signature if necessary
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 or Ezy Invoice.