Quotation
Also called: quote, estimate
What is Quotation?
A quotation is a formal priced offer sent to a customer before a sale, setting out items, quantities, rates, taxes, validity and terms. Accepted, it becomes the basis for the order and the eventual invoice.
Why Quotation matters
Most billing disputes start in the quotation — an unstated tax basis, an open-ended validity, or a scope line loose enough to read two ways. A tight quote costs ten minutes and saves weeks of argument.
How Quotation works in practice
State clearly whether prices are inclusive or exclusive of GST, give the quote a number and a validity date, and carry the accepted quotation through to the invoice unchanged so the customer sees the same figures twice.
Frequently asked questions
Generally it is an offer rather than a contract, and binding once accepted within its validity period on the stated terms.