A good quotation should make the proposed work, price and conditions easy for the customer to understand before they accept the offer. It is not simply a price list: it should explain what is being offered, how long the offer is valid and what commercial terms apply.
You can build the document alongside this checklist with the Tooloos Quotation Generator.
1. Business and customer details
Identify both parties clearly. Include your business name and contact details, then add the customer or client information. This makes the quotation easier to reference later and helps avoid confusion when multiple projects are being discussed.
2. Quotation number and issue date
Assign a reference number to the quotation and include the issue date. A consistent numbering system makes it easier to track revisions, customer approvals and later invoices.
3. Scope, products or services
Describe exactly what you are proposing. Use separate line items for products, services, quantities and rates. If the work has exclusions or assumptions, make those clear rather than leaving the customer to guess.
4. Price, tax and discounts
Show the proposed subtotal, applicable tax, discounts, shipping or other charges, and final quoted total. Where tax treatment matters, verify the correct rate and whether prices are tax-inclusive or tax-exclusive.
For India-focused workflows, use the GST Quotation Generator for India as a starting configuration.
5. Quotation validity
A validity period tells the customer how long the proposed price and terms remain open. This is useful when supplier costs, exchange rates, stock availability or project scheduling can change over time.
6. Payment terms
Explain when and how payment is expected if the quotation is accepted. Depending on the work, this might be full payment, an advance, milestone payments or a due period after invoicing. The Quotation Generator with Payment Terms provides a focused workflow for this.
7. Notes, assumptions and conditions
Use notes to explain delivery time, project assumptions, excluded work, warranty information or other important context. Clear conditions reduce the chance of different expectations after acceptance.
A simple quotation checklist
- Business details
- Customer details
- Quotation number and date
- Products or services
- Quantity and rates
- Tax and discounts
- Final proposed total
- Validity period
- Payment terms
- Scope notes and conditions
What happens after the quotation is accepted?
Once the customer accepts the quotation and payment becomes due, the next document is usually an invoice. Review the final quantities, dates and totals rather than assuming the quote and invoice will always be identical. Tooloos includes a Convert Quotation to Invoice workflow for this transition.
Frequently asked questions
Should a quotation include a validity date?
It is often useful because it tells the customer how long the proposed price and terms remain available.
Is a quotation the same as an invoice?
No. A quotation usually proposes pricing before acceptance, while an invoice is typically used to request payment. See the Invoice vs Quotation guide for a full comparison.
Can a quotation include tax?
Yes, where relevant. Make it clear whether the quoted prices include tax or whether tax is added separately.