Quotation format for business
A quotation is where a deal is won and where most disputes are seeded. The price is the easy part; the validity, the terms and what is excluded are the parts people leave out and regret.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Steel window frame 4×3 | 24 | 2,480.00 | 59,520.00 |
| Installation at site | 24 | 340.00 | 8,160.00 |
- Your name, address and contact details
- The customer’s name and the enquiry reference
- A quotation number and date
- A clear description of each item or service
- Quantity, unit rate and total
- Taxes, shown separately
- Validity period — the date the rates stop being firm
- Payment terms, including any advance
- Delivery period and place
- What is excluded — the clause that prevents most disputes
Validity is not a formality
A quotation without an expiry date is an open offer at a price that may no longer be viable. In any trade where input costs move — steel, yarn, chemicals — the validity period is the most important line on the document.
Say what is excluded
Freight, unloading, installation, site preparation, statutory fees. Most quotation disputes are not about the price of what was included; they are about who was supposed to pay for something nobody mentioned.
Make it easy to accept
A quotation that can be converted into an order without re-typing gets accepted faster, and the order and the eventual invoice then agree with each other by construction.
Quotation questions
How long should a quotation be valid?
Long enough for the customer to decide and short enough that you are not held to a price after your costs have moved — commonly seven to thirty days. In volatile markets, shorter.
Should a quotation show tax?
Yes, shown separately, so the customer knows the full cost. Quoting a figure that turns out to exclude 18% is the fastest way to lose the order at the invoice stage.
Is a quotation legally binding?
Generally it is an offer that becomes binding when accepted within its validity period on the terms stated — which is exactly why the validity period and the exclusions matter.
What is the difference between a quotation and a proforma invoice?
Little in practice. A proforma is usually more formal and is often used where the buyer needs a document to arrange an advance payment or a letter of credit.
Related
Quote, then convert without re-typing
In tBiz a quotation becomes an order and then an invoice against the same party ledger.