Quotation guide

Quotation Format: Required Fields, How to Write One, and Free Templates

A useful quotation is more than a price list. It should let a customer quickly confirm who is quoting, what is included, how much it costs, when it can be delivered, and how long the offer remains valid. This guide covers the quotation format, required fields, writing process, and final checks.

What is a quotation?

A quotation, often shortened to quote, is a seller’s written offer describing products or services, prices, and commercial terms. It normally follows an inquiry and helps a customer decide whether to accept the proposed scope and price.

A quote is not the same as a final invoice, and it does not always mean the customer has accepted the offer. For larger jobs, add an acceptance area or move to a contract, sales order, and invoice after approval.

What fields belong in a quotation format?

The exact level of detail depends on the work, but a complete quotation usually includes:

Seller details

Business or individual name, address, contact person, phone, email, and relevant tax information.

Customer details

Customer company, contact, address, and a project or inquiry reference when available.

Quotation details

A unique quote number, issue date, validity date, and the person responsible for the offer.

Products or services

Names, specifications or scope, quantities, units, unit prices, discounts, and line amounts.

Totals

Subtotal, tax, freight or other charges, currency, and the final total.

Commercial terms

Payment method, milestones, lead time, delivery location, included scope, and exclusions.

How to write a quotation in 6 steps

  1. Confirm the requirement

    Verify specifications, scope, quantity, delivery location, and timing. If the request is unclear, avoid presenting an unexplained total.

  2. Choose the right format

    Use an automatic Excel quotation for many line items, Word when layout flexibility matters, or PDF when you need a printable form or visual reference.

  3. Add both parties and quote details

    Use complete business names, assign a unique quote number, and state the issue and validity dates.

  4. Itemize scope and price

    Make every cost understandable. For services, record deliverables, hours, rates, included revisions, and out-of-scope work.

  5. Set the commercial terms

    State tax, freight, payment milestones, lead time, warranty, currency, and price-adjustment conditions. Trade quotations should also name the Incoterm and place.

  6. Review and send

    Reconcile the calculations, details, and terms, then export a PDF with a clear filename and keep the exact version sent.

Quotation vs estimate vs invoice

DocumentMain purposeTypical timing
Quotation / QuoteOffers a defined price, scope, and commercial termsBefore the customer accepts
EstimateProvides an approximate cost where quantity or effort is uncertainWhile scope or quantities may still change
InvoiceRequests payment and records an amount dueAfter acceptance, delivery, or a payment milestone

Common quotation mistakes

  • Showing only a total without specifications, scope, or quantities.
  • Leaving out the validity date when material prices or exchange rates can change.
  • Combining tax, freight, and discounts so the customer cannot reconcile the total.
  • Failing to define exclusions, included revisions, or out-of-scope charges for services.
  • Sending an editable draft without retaining the final PDF that the customer received.

Pre-send quotation checklist

  • Are the customer, contact, and project names correct?
  • Do quantity × unit price, discounts, tax, freight, and total reconcile?
  • Are the currency, validity, payment method, and delivery timing explicit?
  • Are scope, deliverables, and exclusions easy to understand?
  • Can both parties track the quote number, filename, and version?
  • Has the final document been exported to an easy-to-open PDF?