Quotation format and best practices

What a quotation is, and is not

A quotation is a priced offer sent before the sale. It is not a GST document, so there is no prescribed format and no GST is payable on it. Once the buyer accepts it, usually by a purchase order or a written confirmation, it becomes the basis of the deal, and the tax invoice follows at supply.

Because it carries no legal format, quality is entirely in your hands. A quote that looks like your invoice, uses the same item names and shows GST correctly makes the later invoice a formality.

Fields to include

Add your GSTIN, contact number, bank and UPI details and the name of the person who prepared the quote.

A worked quotation

Two habits make this easy to accept. First, show the total including GST in bold, because that is what the buyer has to arrange. Second, if freight is extra, say roughly how much, for example approx. ₹2,500 to site. Buyers compare totals, and a surprise freight line at billing kills repeat orders.

Rates above are only for illustration. Check the current GST rate for your HSN on cbic-gst.gov.in, since rates are revised by notification.

This is general information, not tax advice.

Terms and conditions wording you can adapt

1. Prices are valid until the date shown and are subject to stock availability.
2. GST and other taxes as applicable at the time of invoicing.
3. Freight, loading and unloading extra unless stated.
4. Delivery period starts from receipt of confirmed PO and advance.
5. Goods once dispatched are at the buyer's risk in transit unless insured by us.
6. Payment by bank transfer or UPI to the account shown. Cheques subject to realisation.
7. Interest may be charged on payments delayed beyond the agreed credit period.

Keep terms short. A page of tiny print is rarely read and rarely enforced.

Best practices that win more orders

• Quote the same day. A quick quote with a short validity beats a perfect one sent next week.
• Use your standard price list. If dealers get different rates by category, apply the right rate every time; see price list management for dealers.
• Offer options. Good, better, best at three price points lets the buyer choose instead of bargaining.
• Attach photos or a catalogue link for items the buyer has not seen.
• Follow up on day 3 and before expiry. A simple message such as: Sir, the tile quote QT/118 is valid till 21 November. Shall we block the stock? converts more than silence.
• Record why quotes are lost (price, delivery, competitor stock) and review monthly.

Quotation vs estimate vs proforma

An estimate is an approximate cost, common for repair or project work where the final figure can change. A quotation is a firm price for a fixed period. A proforma invoice is usually sent after the buyer agrees, to collect an advance or support a loan. Read estimate vs quotation and proforma vs tax invoice for when to use each.

Doing this with Tally and Cashflow OS

Cashflow OS has quotations as a document, using your Tally items, with your logo, colours, letterhead, signature, and bank and UPI details. Price lists can fill dealer rates automatically. Share the quote as a PDF on WhatsApp or email from the phone. When the customer agrees, convert the quotation into a sales order or a Tally sales invoice, which is posted to Tally through the connector, so nobody types the lines again.