Debitoor Dictionary

Accounting terms explained in a simple way

Over 150 Articles for Founders and Small Enterpreneurs

  1. Accounting system
  2. Cost
  3. Debtor
  4. Expense
  5. Sales

Quotation - What is a quotation?

A quotation is a document that a seller provides to a buyer that offers goods or services at a stated price, under specified conditions

Create a professional looking, customised quote in less than a minute with our templates. Try Debitoor for 7 days free.

Quotations (or quotes) are documents that are used to let a potential buyer know how much your goods or services will cost before they commit to the purchase.

Quotations commit the seller to a specific price, so they are mostly used when the work that is being quoted has clear parameters (time, labour, raw materials, etc.) and costs are relatively stable.

Written Quotations

When sending a quotation to a customer, there are a number of things that should be included and considered:

  • A quotation should include the price you have decided to charge for the service or goods to be provided. This price can be accompanied by a breakdown of the components leading to the settled price, including labor costs, raw material costs, VAT etc.
  • It’s also a good idea to include a time schedule for the given price: i.e. how long the project will take to be completed or how long it will be until goods are delivered.

Optional: you may want to indicate a specific period for which the quotation is valid, e.g. 30 days.

Furthermore, if you are quoting the price of a project or service, you may want to explain how any requests for modifications or changes will affect the price once the project is underway.

Finally, as with all official documents, your quotation should include the full contact details of your business and your terms of payment .

Quotations in Debitoor

Debitoor makes creating and sending quote to your customers fast and simple. Our templates make it easy to fill in the details, and you can add notes or terms as necessary. Read more about quotes in Debitoor.