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A quotation is a formal document in which a seller offers to provide specific goods or services to a buyer at a stated price, before work begins.
A quotation (often shortened to "quote") is a fixed-price offer that documents what a seller will deliver, at what cost, and under what conditions. Unlike an estimate (which is an approximate figure that may change), a quotation is binding once accepted by the buyer — it represents a firm commitment to a price for a specified scope of work within a stated validity period. Quotations are commonly used in service industries (consulting, agencies, contractors), B2B sales, and any situation where the buyer needs to compare prices or seek internal approval before committing. Once a quotation is accepted, it typically becomes the basis for a contract and is later followed by an invoice when work is complete.
Send a quotation when a prospective buyer asks "how much will this cost?" before any work has begun. Always include a validity period (30 days is standard). Once the buyer accepts the quotation in writing, treat it as a binding commitment and begin the work. Convert it to an invoice when work is completed.
An ESTIMATE is approximate and can change as the project evolves. A QUOTATION is firm and binding once accepted within its validity period.
A QUOTATION focuses on pricing for a defined scope. A PROPOSAL is a more comprehensive document that pitches an approach, includes problem statements, methodologies, and pricing.
A QUOTATION offers a price BEFORE work begins. An INVOICE requests payment AFTER work is delivered.
Example: A digital agency sends quotation QUO-2026-0103 to a client offering "Brand identity package — logo + 3 color variations + brand guidelines, $3,200 fixed price, 4-week delivery", valid for 30 days. When the client signs and accepts, the agency begins work.
Yes — within its validity period and after the buyer accepts it (often in writing), a quotation becomes a binding commitment. Before acceptance, the buyer is free to reject or negotiate. After acceptance, the seller is committed to the stated price for the stated scope.
A validity period (e.g., "valid for 30 days") protects the seller from being held to old prices indefinitely. After the period expires, the seller can revise pricing if costs have changed. 30 days is the most common validity window.
In most invoicing tools (including SuiteZai), yes. Once the client accepts the quotation and the work is delivered, you can convert it to an invoice in one click — the items, prices, and totals carry over automatically.
Yes. Always state the tax-inclusive total clearly so the buyer knows the final amount payable. Best practice is to show subtotal, tax amount, and grand total separately to remove ambiguity.
A quotation is a price offer that says "if you accept, I will do this work for this amount". A proforma invoice is a draft invoice issued for advance payment, customs declarations, or to confirm an order — it looks like an invoice but is not yet a request for payment.
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