How to Create a Product Sales Quotation
Use this feature to prepare and send a sales quotation to a customer before creating a sales invoice.
A Product Sales Quotation allows you to provide product prices, quantities, taxes, discounts, and delivery information to a customer without affecting your inventory or accounting records.
Important: Creating a Product Sales Quotation does not create a sale, reduce inventory, or generate any accounting transaction. It is a non-financial document that can later be converted into a Sales Invoice once the customer accepts the quotation.
The system automatically generates a unique Quotation Number for every product sales quotation created.
Step 1: Open the Quotation List
From the sidebar menu, click Product Sales.
Select Quotation List.
The Quotation List page will display all existing product sales quotations.
Step 2: Create a New Quotation
Click the Create button located at the top-right corner of the page.
The Create Quotation form will open.
Step 3: Enter Customer Information
Complete the customer details:
| Field | Description |
|---|---|
| Customer | Select the customer receiving the quotation. |
| Reference | Enter an internal or customer reference if available. |
Step 4: Add Products
Select the products you want to include in the quotation.
Each selected product will automatically be added to the quotation table.
For each product, the system displays:
| Field | Description |
|---|---|
| Product Code | The unique product code. |
| Product Name | The product name. |
| Quantity | Enter the quantity being quoted. |
| Price | Enter or update the selling price per unit. |
| Unit Cost | Displays the current product cost for reference. |
| Tax | Displays the product tax if one was assigned when the product was created. |
| Subtotal | Automatically calculated based on quantity and selling price. |
Removing a Product
If a product was added by mistake:
Locate the product row.
Click the Red X Button under the Action column.
The product will be removed from the quotation.
Step 5: Apply Discounts
If you are offering a discount, select the appropriate discount type.
Discount Type
Choose one of the following:
Fixed Amount
Percentage
If you select:
Fixed Amount, enter the discount value.
Percentage, enter the discount percentage.
The system automatically calculates and displays the Total Discount.
Step 6: Complete Additional Information
Fill in the remaining fields:
| Field | Description |
|---|---|
| Transport Cost | Enter the delivery or transportation cost if applicable. |
| Quotation Tax | Select the applicable sales tax. |
| Delivery Place | Enter the delivery destination. |
| Sales Quotation Date | Select the quotation date. |
| Status | Select the quotation status. |
| Note | Enter additional notes for the customer. |
| Description | Enter additional quotation information if required. |
The system automatically calculates:
Total Discount
Total Tax
Net Total
Step 7: Save the 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 Quotation Number and save the quotation.
Understanding the Quotation
A Product Sales Quotation is an offer made to a customer before a sale takes place.
It allows you to:
Prepare pricing for customers.
Quote multiple products.
Apply discounts and taxes.
Include transport costs.
Share estimated totals before confirming a sale.
The quotation can later be converted into a Sales Invoice if the customer accepts your offer, eliminating the need to enter the information again.
Understanding the Accounting Effect
Creating a Product Sales Quotation does not create any accounting transaction.
The system does not:
Record a sale.
Reduce inventory.
Create customer balances.
Record revenue.
Calculate profit.
Update cash or bank accounts.
The quotation is simply a proposal and has no financial impact until it is converted into a Sales Invoice.
Impact on Inventory
Creating a quotation does not affect inventory.
The system does not:
Reduce Stock in Hand.
Reserve inventory.
Update inventory history.
Change product quantities.
Products remain fully available until an actual Sales Invoice is created.
Impact on Financial Reports
Creating a Product Sales Quotation does not affect:
Profit & Loss Report
No revenue or cost of sales is recorded because no sale has taken place.
Balance Sheet
No assets, liabilities, or equity accounts are affected.
Cash Flow Report
No cash movement is recorded.
Customer Ledger
No amount is added to the customer's account because no invoice has been created.
Inventory Reports
Inventory quantities and inventory values remain unchanged.
Sales Reports
Product Sales Quotations may appear in quotation or sales pipeline reports for tracking purposes, but they do not affect actual sales reports or revenue figures until converted into a Sales Invoice.
Why Creating Product Sales Quotations Is Important
Creating product sales quotations helps you:
Provide professional price quotations to customers.
Negotiate prices before confirming a sale.
Offer discounts and promotional pricing.
Prepare accurate customer estimates.
Improve customer confidence with formal quotations.
Maintain a record of all quotations sent.
Convert accepted quotations into sales invoices quickly.
Improve sales planning and customer follow-up.
Best Practice
Always create a Product Sales Quotation when a customer requests pricing before placing an order. Once the customer accepts the quotation, convert it into a Sales Invoice to complete the sale while keeping all quotation details intact.