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What is a Quotation?

Defined: A document sent to a potential customer offering to sell goods or services at a certain price, under specified conditions.

A quotation is used to let a potential customer know the cost of goods or services before they decide to purchase them. When a seller sends a quotation, it commits them to a certain price. This is why quotations are mostly used when costs are relatively stable and the services/goods to be provided can be accurately estimated (labor, cost of raw materials, etc.).

What to include in a quotation

There are a number of items that should be included and considered when preparing a quotation for a customer.
 

First of all, a quotation should include the price that you have decided to charge for the service or goods you will provide. In a quotation, you can include a breakdown of the components leading to the settled price (such as labor costs, raw material costs, VAT etc.) You may also want to specifiy a time schedule: i.e. how long the project will take you or how long it will be until goods are delivered.

A quotation may also indicate a specific time period for which it is valid, e.g. 30 days. Also, a project or service quotation may include an explaination of how any requests for modifications or changes will affect the price once the project is underway.

Quotations in Reviso

The Reviso accounting software makes it easy to prepare and send quotations to your customers. Find out more about quotations in our help section.

 

Try reviso for free for 14 days

Reviso is a cloud accounting platform providing efficient online collaboration between small businesses and accountants.

Choose between two different trials, both containing all the core features of our accounting system. One of the trials is without data and can be upgraded to a subscription within the 14 days period.