What is a Quotation and What to Include in a Quote?

quotation

Quotation or Quote in business is a formal document of reply by the seller to a prospectus customer or a buyer . However , it should contain the details of the products or services that the buyer wishes to avail along with the quantity.

 

Quotation

 

When and where is a Quote issued ?

It is issued when a seller gets a RFQ(Request For Quotation) in a document form or through any other means where a person wishes to avail the services , however the same can be communicated verbally as well  .

They are often required for services but is also commonly used by businesses that sell goods.

There are various types of quotations that may be issued :

  • On the spot Quotation
  • Station Price Quotation
    • Goods delivered to the nearest station from the warehouse
  • Free On Rail (FOR)
    • FOR price quotation = Station price quote + Loading Charges(loading expenses, freight and unloading expenses )
  • Cash With Order (CWO)
    • The buyer has to send cash along with the order
  • Cash On Delivery (COD)
    • The buyer has to pay cash after receiving the delivery of the goods .

What should be included in a Quote ?

It should include the price that you have decided to charge for the service or goods you will provide , while it may also contain a breakup of the various costs that may be incurred by you ( labor costs , taxes etc ) .

Also it may include a time frame for which the quote may hold valid .

Quotion in ZapERP

*Sample of a Quotation generated in our Invoice .

Some Extra Knowledge

ZapAccounting can help you to create Quotations and following invoices within 60 seconds , thus making your business processing faster and better for you and your revenue graphs to rise .

You can customize the quotations and invoices by selecting from over 100+ themes and by adding your company logo as well, above all you can choose from a variety of plans including a FREE account as well

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