How to Create a Purchase Quotation
Use this feature to prepare and send purchase quotations to suppliers before creating an actual purchase invoice.
A purchase quotation is used to request pricing, quantities, delivery terms, or negotiate purchasing conditions with a supplier before committing to a purchase.
Important: Creating a purchase quotation does not create inventory, supplier balances, payments, accounting entries, or financial transactions. It is simply a purchasing document that can later be converted into a Purchase Invoice.
The system automatically generates a unique Purchase Quotation Number for every quotation created.
Step 1: Open the Purchase Quotation List
From the sidebar menu, click Purchases.
Select Purchase Quotations.
The Purchase Quotation List page will display all existing purchase quotations.
Step 2: Create a New Purchase Quotation
Click the Create button located at the top-right corner of the page.
The Create Purchase Quotation form will open.
Step 3: Select the Supplier
Select the supplier from the Supplier field.
If the supplier does not exist, click the + button beside the supplier field to create a new supplier.
Complete the supplier information and save.
Return to the quotation form and select the supplier.
Step 4: Add Products
Select the products you wish to include in the quotation.
The selected products will be added to the quotation table.
For each product, you can enter:
| Field | Description |
|---|---|
| Quantity | Enter the quantity you wish to purchase. |
| Unit Product Price | Enter the supplier's quoted unit price. |
| Unit Transport Cost | Enter any transport or shipping cost per unit if applicable. |
Removing a Product
If a product was added by mistake:
Locate the product row.
Click the Red Remove Button under the Action column.
The product will be removed from the quotation.
Step 5: Create a Quantity-Only Quotation (Optional)
If you do not want prices, taxes, or line amounts to appear on the quotation:
Locate the Hide Prices, Taxes and Line Amounts option below the product selection field.
Tick the checkbox.
The quotation will display product quantities only without showing pricing information.
This is useful when requesting supplier quotations based on quantities without disclosing pricing details.
Step 6: Complete Additional Quotation Information
Fill in the remaining fields as required:
| Field | Description |
|---|---|
| Reference | Enter an internal or supplier reference if available. |
| Payment Terms | Select the expected payment terms. |
| Quotation Tax | Select the applicable tax if required. |
| Discount Type | Select either Fixed Amount or Percentage. |
| Discount Amount | Enter the discount value. |
| Description | Enter additional information or instructions. |
| Purchase Date | Select the quotation date. |
| Purchase Order Date | Select the order date if applicable. |
| Status | Select the appropriate quotation status. |
Quotation Total
The system automatically calculates quotation totals based on:
Product quantities
Product prices
Taxes
Discounts
These calculations are for quotation purposes only and do not create accounting transactions.
Step 8: Save the Purchase Quotation
Review all information entered.
Click Save to create the quotation.
If you wish to clear the form and start over, click Reset.
The system will automatically generate a Purchase Quotation Number and save the quotation.
Converting a Purchase Quotation to a Purchase Invoice
Once the supplier accepts the quotation or the purchase is approved:
Open the Purchase Quotation View Page.
Locate the quotation you want to convert.
Click Convert to Purchase Invoice.
The system will transfer the quotation information into a Purchase Invoice, allowing you to edit and continue the purchasing process without re-entering all the details.
Understanding the Accounting Effect
Purchase Quotations Do Not Create Accounting Transactions
Creating a purchase quotation does not:
Increase inventory.
Create supplier dues.
Update supplier ledger accounts.
Affect cash or bank accounts.
Create liabilities.
Create assets.
Purchase quotations are non-financial documents used for planning and supplier communication.
Impact on Financial Reports
Creating a purchase quotation does not affect:
Profit & Loss Report
Balance Sheet
Cash Flow Report
Supplier Ledger
Inventory Reports
Financial reports remain unchanged until the quotation is converted into a Purchase Invoice and processed.
Why Creating Purchase Quotations Is Important
Purchase quotations help you:
Request pricing from suppliers before purchasing.
Compare supplier offers and costs.
Negotiate better purchasing terms.
Plan future purchases.
Obtain management approval before placing orders.
Reduce purchasing errors.
Maintain a documented purchasing process.
Convert approved quotations directly into purchase invoices.
Best Practice
Use purchase quotations whenever you need supplier pricing, quantity confirmations, or approval before committing to a purchase. Once approved, convert the quotation into a Purchase Invoice to continue the purchasing process efficiently.