Quotations
Send priced quotations to prospects and customers, and convert them when the customer accepts.
Why and when you use it
Many customers ask for a price before they place an order, especially for a large quantity. A quotation puts your offer in writing with items, rates and GST so there is no confusion later. When the customer says yes, you convert the quotation instead of typing everything again. Salesmen and owners use it most.
Before you start
- Add the customer in Customers (or at least have their name, state and GSTIN ready)
- Add the products with current sale prices and GST rates in Inventory
Step by step
- Open QuotationsOpen Quotations from the Sales area. You see the quotations you have already made.
- Start a new quotationStart a new quotation and pick the customer. Their state decides whether GST will show as CGST + SGST or IGST.
- Add items and pricesAdd each product with quantity and the rate you are offering. Check the GST on each line, because the customer will compare the final total.
- Add terms in the notesWrite the validity of the offer, delivery time and payment terms in the notes, for example "Valid till 30 Nov 2026, delivery in 3 days".
- Save and shareSave the quotation, then print it or share it with the customer.
- Follow upKeep the quotation open until the customer replies. Log calls and visits in Activities so the whole team knows the status.
- Convert when acceptedWhen the customer accepts, convert the quotation so it becomes the order or invoice. Nothing touches stock or your books until you do.
Worked example
Gupta Kirana Store asks Sharma Traders for a price on 50 cartons of tea packets for the festival season. Sharma Traders offers ₹2,400 per carton plus 5% GST, valid for 15 days.
- Open Quotations and start a new quotation for Gupta Kirana Store, dated 12 Nov 2026.
- Add Tea 250 g (carton), quantity 50, rate ₹2,400: taxable ₹1,20,000.
- GST at 5% within Rajasthan shows as CGST ₹3,000 and SGST ₹3,000; total ₹1,26,000.
- Notes: Valid till 27 Nov 2026. Delivery within 3 days of order on the Malviya Nagar route.
- Save, print, and Ravi hands it over on his next visit.
Result: The quotation is saved for ₹1,26,000. Stock, GST and the customer's balance do not change. When Gupta Kirana confirms, Ravi converts it and the order follows the normal order and invoice steps.
💡 Tips
- Always state how long the price is valid; prices of FMCG goods change often.
- Quote the GST separately so the customer sees the taxable value and tax clearly.
- Check stock before you quote a big quantity, so you do not promise what you cannot deliver.
⚠️ Common mistakes
- Raising a sales invoice as a 'quotation'. An invoice reduces stock and adds GST; use a quotation for price offers.
- Forgetting to convert an accepted quotation and typing a fresh order, so the quotation stays open and reports show it as still pending.
Questions
What is the difference between Quotations and Quotes & Proforma?
Both are offers that do not touch stock or the books. Use Quotes & Proforma when the customer needs a proforma invoice, for example to arrange an advance payment.
Does a quotation count in GST returns?
No. Only invoices count. A quotation is just an offer.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Open Quotations and show the existing list.
- Scene 2: Start a new quotation for Gupta Kirana Store and add 50 cartons of tea.
- Scene 3: Point at the GST split and the total of ₹1,26,000.
- Scene 4: Type validity and delivery terms in the notes and save.
- Scene 5: Print the quotation.
- Scene 6: Explain that nothing changes in stock until you convert it.