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Guide

What is a quotation?

A plain definition for sales and buyers: what a quotation is, what it must contain, and how it differs from an invoice.

Quotation (quote)

A quotation is a formal pre-sale price document from seller to buyer. It lists the proposed products or services, quantities, unit prices, discounts, tax, and a grand total, usually with a validity period and payment or delivery terms. After acceptance, parties issue a contract, PO, or invoice.

What a complete quotation includes

  • Seller identity and contact
  • Buyer identity and contact
  • Quote date and validity
  • Line items: name, spec, qty, unit price, line total
  • Summary: discount, tax, shipping, grand total
  • Commercial notes: lead time, payment, warranty

Quotation vs contract vs invoice

DocumentWhenPurpose
QuotationBefore the salePropose price for review
Contract / POAfter agreementBind the deal
InvoiceOn delivery or billingRequest payment

See Quotation vs invoice for a deeper comparison. Quotely creates quotations only—not invoices.

How to create a quotation online

  1. Lock letterhead and terms in a template
  2. Bind qty, price, discount, and tax with formulas
  3. Reuse customer and product records
  4. Export PDF or send a share link

Quotely is free online quotation software by ComTools. Build quotes in the browser with templates and formulas—no Excel or Word install.

Common questions

Is a quotation legally binding?
It can be an invitation to treat or an offer, depending on jurisdiction and wording. It is not an invoice and is usually not a signed contract. Use a contract for material deals.
Is quote the same as quotation?
In business English, yes—both mean the pre-sale price document. Invoice is a different document.
Do small businesses need quotation software?
Not for a one-off letter. If you quote weekly, software keeps totals accurate and branding consistent.

Create your first quotation online

Use Quotely free—template, formulas, PDF in minutes.

What Is a Quotation? Definition, Contents & How to Create One