How to Add Quotation
Overview
Creating a quotation is the first formal step in the sales process. This guide walks you through creating a professional, GST-compliant quotation that you can send to customers.
Prerequisites
Before creating a quotation:
- Customer must exist in customer master
- Items to be quoted must be created in item master
- User must have "Create Quotation" permission
- Payment terms configured in system settings
- GST rates set up for items
Step-by-Step Guide
Step 1: Navigate to Add Quotation
Go to Sales > Quotation from the sidebar and click Add Quotation button.
The quotation form opens with two tabs: Items and Documents.
Step 2: Select Customer
Customer Name Field
Type customer name or code to search. System shows matching results with customer name and GST number.
Once selected, system automatically fills:
- Billing Address - Primary address from customer master
- Shipping Address - Defaults to billing address (can be changed)
- GST Number - Customer's GSTIN with registration type
- Payment Terms - Default terms from customer master
Key Points:
- Customer must be created before quotation entry
- Click search icon to view all customers if needed
- Billing and shipping addresses can be different
- GST number validates automatically
Step 3: Enter Quotation Details
| Field | Description | Auto-filled? |
|---|---|---|
| Quotation# | Unique quotation reference number | Yes - Auto-generated based on settings |
| Quote Date | Date quotation is created | Yes - Current date (can be changed) |
| Expiry Date | Last date quotation is valid | No - Must be entered |
| Payment Terms | Payment conditions (Net 15, Net 30, etc.) | Yes - From customer master (can be changed) |
| Reference | Customer's inquiry or RFQ number | No - Optional field |
Important Notes:
- Quotation number can be edited if manual numbering is enabled
- Expiry date should consider delivery timeline and price validity
- Reference field helps track customer inquiry source
Step 4: Add Items
Click Items tab to add products or services to the quotation.
Item Entry Process
- Click in Item Details field
- Search by item name, code, or description
- Select item from dropdown
- System auto-fills: Unit Price, Tax Rate, HSN/SAC Code
- Enter Qty (Quantity)
- Enter Discount(%) if applicable
- System auto-calculates: Tax Amount and Total Amount
- Click + icon to add another item
Item Table Fields
| Field | What It Means | Notes |
|---|---|---|
| Item Details | Product or service being quoted | Shows item code and description |
| Qty | Number of units | Numeric value, decimals allowed |
| Unit Price | Price per unit (excluding tax) | Can be edited to offer custom price |
| Discount(%) | Discount percentage on line item | Applied before tax calculation |
| Tax Rate | GST percentage (CGST+SGST or IGST) | Auto-filled from item HSN code |
| Tax Amount | Calculated GST amount | Auto-calculated, read-only |
| Amount | Line total (including tax) | Auto-calculated, read-only |
Step 5: Configure Discount Options
Discount Settings
Two options available in dropdown next to "Discount" label:
-
Discount at item level (Default)
- Apply different discount percentage per item
- More control over individual product pricing
-
Discount at header level
- Single discount applies to entire quotation value
- Useful for flat discount negotiations
Unit Is / Tax Exclusive Toggle
- Tax Exclusive - Prices exclude GST (GST added on top)
- Tax Inclusive - Prices include GST (GST extracted from price)
Step 6: Add Terms & Conditions
Scroll to Terms & Conditions section below the item table.
Standard Terms Pre-filled
System shows default terms:
- Quotation Validity period explanation
- Pricing and Payment conditions with GST note
- Order Confirmation requirement
- Delivery Timeline expectations
Customization:
- Edit text directly in the field
- Add company-specific policies
- Include warranty or service terms
- Mention delivery charges if applicable
Step 7: Review Totals
Right side panel shows automatic calculation summary:
| Field | What It Shows |
|---|---|
| Sub Total | Total of all items before tax and discount |
| Taxable Amount | Amount on which tax is calculated (after discount) |
| CGST | Central GST amount (for intra-state) |
| SGST | State GST amount (for intra-state) |
| IGST | Integrated GST amount (for inter-state) |
| Total Amount | Final quotation value including all taxes |
Tax Logic:
- Same state (customer & company) = CGST + SGST
- Different states = IGST
- System automatically determines based on GSTIN
Step 8: Attach Documents (Optional)
Click Documents tab to upload supporting files.
Useful attachments:
- Product specifications
- Technical drawings
- Compliance certificates
- Previous correspondence
Supported formats: PDF, Excel, Word, Images
Step 9: Save or Submit
Three action buttons at bottom:
Cancel
Discard changes and return to quotation list
Save
Save as Draft for later completion or review
Add
Submit quotation and mark as ready to send
Verification
After saving, confirm:
- Quotation appears in quotation list with unique number
- Customer name and GST number are correct
- All item quantities and prices are accurate
- Tax calculations match expected GST amounts
- Expiry date is set appropriately
- Terms & conditions are complete
Common Issues & Solutions
Issue 1: Customer not appearing in search
Solution: Create customer master entry first under Sales > Customers. Customer must exist before quotation creation.
Issue 2: Wrong tax rate applied
Solution: Check item's HSN/SAC code in item master. GST rate is linked to HSN code. Update item master if incorrect.
Issue 3: Cannot edit unit price
Solution: Check user role permissions. "Edit Selling Price" permission required to modify unit price during quotation entry.
Issue 4: Quotation number not auto-generating
Solution: Verify auto-numbering is enabled in Configuration → Finance → Auto Id in the Admin console. If manual numbering, enter quotation number before saving.
Related Functionalities
- How to View Quotation - Check quotation details and print
- Customer Management - Add and manage customer records
- Item Management - Configure product catalog
Quick Tips
Best Practices
- Use reference field to track customer inquiry number for future follow-up
- Set expiry date considering material availability and price fluctuation risk
- Review quotation PDF preview before marking as "Sent" to customer
- Save frequently as draft while building complex quotations
- Add product images in Documents tab for better customer understanding
- Keep payment terms consistent with company credit policy
Need help? Contact support at support@bizconnekt.com