What is a Quotation

A quotation is a formal document provided by a seller to a buyer detailing the costs involved in purchasing specific products/services. A quotation is more formal than an estimate as it mentions all types of costs involved in the sale, including GST, discounts, shipping charges and so on, whereas an estimate shows only the major costs of the sale. 

A quotation, however, is not a legally binding document and is just for a mutual understanding between the two parties about the deal and its terms. 

Quotation Format

As quotations are not legal documents of sale, no specific format has been prescribed. Businesses can generate quotations in their own formats, making sure all the details are covered. Once a deal is finalised, a quotation can be converted into an invoice. Thereafter, the quotation holds no value in the books of accounting.

Quotation Format – Details to Include

Having a standard quotation format helps businesses save time, so they don’t have to search for a new format every time they generate a quotation. While creating a format, make sure all the details mentioned here are added to make it comprehensive. 

• Seller’s Company Name, Address, and Contact Details
• Quotation Number
• Buyer’s Name and Business Contact
• Quotation Date
• Item Details 
• Name
• Quantity
• Price
• Discount
• Tax (CGST/SGST)
• Total Amount
• Payment and Sale Terms and Conditions

A quotation looks almost similar to an invoice. However, the purpose for which both are used is different. If you’re creating a quotation online using billing software, it can be converted into an invoice once the buyer agrees to the deal.

Quotation Format in Word or Google Docs

Using MS Word is one of the easiest ways to create a quotation format in Word. Using the sample quotation format, you can create a similar one in a blank Word document. MS Word also offers some pre-designed templates, which can also be used as a quotation format. Search for Invoice Format in Word; with slight changes, it can be converted into a quotation template in Word.

Another method is to create a quotation format in Word from scratch. Using the sample quote format provided above, open a blank Word document, create a similar document with your business details, and save it as a quotation template in Word. Make sure to insert all the contents listed above.

Whenever you wish to generate a quote, open the quotation format in a Word document, make a copy of it, fill in the details, save it with a different name and use it. Make sure not to make any changes to the original quotation format in a Word document.

If you don’t have MS Word, you can follow a similar procedure to create a quotation format in Google Docs, which is a free source. All you need is a Google account to access G-Docs.

Quotation Format in Excel or Google Sheets

MS Excel has the edge over MS Word as it allows tables and formulas to auto-populate information. For instance, the total price of the products in a quotation can be auto-generated by inserting a formula. Similarly, an Excel sheet can automatically calculate the date, tax rate, discount, etc.

If you want to create a quotation format in Excel, you can do it in a blank Excel Sheet or search for some quotation or invoice templates, if available. You can use any sample quotation format as a reference to create a quotation format in Excel.

If you don’t have access to Excel, you can also use Google Sheets to create a quotation format in Google Sheets. It is a free source available to everyone having a G-mail account.

Quotation Format in PDF

To create a quotation format in PDF, you should first create a quotation format in Word or Excel using the above-mentioned details.

Once it is ready, you can download it as a PDF to view a quotation format in PDF. However, you cannot make any changes once the file is downloaded. Therefore, fill the quotation format in Word with all the required details, and once you’re sure that the data entered is correct, you can download it as a PDF.

One advantage of using PDF quotations is that the data cannot be edited or changed. Especially when sharing online, quotation format in PDF is safer than quotation formats in Word and Excel. However, any quotation format is fine when taking hard copies, i.e., as printouts.

For businesses, especially in retail, leveraging tools like retail billing software can further streamline the process of generating accurate quotations and invoices. However, any quotation format works well when taking hard copies as printouts.