What is a quotation?

A quotation is an estimated cost of your products/ services that you are willing to sell to your customers. During the sale, a customer may ask about the product or service that you are offering along with its price. This is called a quotation. ERPNext quotation means the cost of the services offered by the erpnext software in different sectors.

What does a quotation contain?

A quotation consists of the following things-

• The recipient

• The products/ services you are offering

• The prices

• Taxes and other charges

• The validity

• Time of delivery

What is the importance of a quotation?

A quotation is important for both buyers and sellers. A quotation is easy to share and serves as a platform where the buyer can discuss with the seller about the product/ service. This reduces the negotiation time between them. It further enables the buyer to compare with other sellers and then choose the right one.

What are the pre-requisites for creating a quotation?

Before creating Erpnext quotation, it is advisable to check these pre-requisites-

Customer-

A customer or a buyer is the one who receives the product/ service offered by the seller. Every customer needs to get a unique id which can be his name. The first step is to create a customer by going to the Customer list and entering his full name. Select the Customer Group and the Territory and save the details. You can store or attach multiple addresses and contacts of the customer. Set default currency and price list. Add the Credit Limit field and integrate multiple accounts of the customer.

Lead-

A lead is a potential customer who might be interested in your products/services. To get the customer, you need to list your product and keep it updated. Proper advertising of your products/ services is necessary for people to check out your products. To create a lead, go to the lead list and click on New and enter the e-mail address. Status is an important field and save the details.

Item-

An item is a product/ service offered by your company. ERPNext allows you to organize all kinds of items like raw materials, finished goods, item variants and service items. Before creating an item, it is advisable to create an item group, warehouse and a unit of measurement. To create an item, go to the item list and click on New. Enter an item code and select an item group. After entering the standard selling rates, click on Save.

Final words

An ERPNext quotation must contain the address, contact details, price list, items table, taxes and other details for the customers. This will make it easier for the buyers to understand the products/ services clearly and then choose the right one.