# Quotations (estimates)

<p class="lead">Build quotations with items, taxes, and an expiration date, send them to the customer for approval, and convert them into a sales invoice in just a few clicks.</p>

A **Quotation** is the formal estimate you give the customer with the prices of products and services. Use a quotation when the customer asks "how much will it be?" and needs an official document to approve internally. Once approved, it is converted and moves on to invoicing.

[[roles: Company, Employee]]

!image[Quotation list with customer, date, due date, amounts and status in ERP Instfy](/assets/img/erp/quotation.webp)

## Before you start

- **Customer created** in *Accounting > Customers*. See [Accounting](#/accounting).
- **Items created** in *Product & Service > Items*, with the correct price and tax. See [Products and services](#/product-service).
- **Taxes, categories, and units** defined in *Product & Service > System Setup*.
- **Company email** configured in *Settings > Email Settings*, if you will send the quotation from the system. See [Settings](#/settings).

**Menu path:** *Quotation*

## Create a quotation

The quotation brings the items and the total amount together in a numbered document.

**Menu path:** *Quotation*

<ol class="steps">
<li>Open <strong>Quotation</strong> in the side menu.</li>
<li>Click <strong>Create</strong> (or the <strong>+</strong> icon).</li>
<li>Select the <strong>customer</strong> and enter the quotation date and, when applicable, the expiration date.</li>
<li>Add the items: choose the product or service, adjust the quantity, and check the price, tax, and discount.</li>
<li>Review the calculated total and add notes if needed.</li>
<li>Click <strong>Save</strong>. The quotation enters the list with its own number.</li>
</ol>

:::note
The quotation uses the [Products and services](#/product-service) catalog. Prices and taxes updated there show up correctly here, with no rework.
:::

## Send the quotation to the customer

**Menu path:** *Quotation*

<ol class="steps">
<li>In the list, open the quotation (view icon) and check the final document.</li>
<li>Use the send action to email it, or download/print it to send through another channel.</li>
<li>Follow the status in the list to see what is waiting for a response.</li>
</ol>

:::tip
Agree on a response deadline with the customer and note it in the notes field. This prevents forgotten quotations with outdated prices.
:::

## Update the quotation status

Recording the customer's response keeps your estimates organized.

**Menu path:** *Quotation*

<ol class="steps">
<li>Open the quotation the customer has responded to.</li>
<li>Change the status according to the customer's response, such as accepted or declined.</li>
<li>If the customer asks for changes, edit the quotation, save it, and send it again.</li>
</ol>

## Convert the quotation into an invoice

With the quotation approved, convert it to bill the customer without retyping items and amounts.

**Menu path:** *Quotation*

<ol class="steps">
<li>Open the approved quotation.</li>
<li>Click the convert action (Convert) available on the quotation.</li>
<li>Review the generated document: customer, items, dates, and total.</li>
<li>Save. The invoice now appears in <strong>Sales Invoice > Sales Invoice</strong>, linked to the original quotation.</li>
</ol>

:::warn
Once converted, make any amount changes on the invoice, not on the quotation. That way the billing document always remains the official source.
:::

## Complete flow

**CRM deal > Quotation > Approval > Sales invoice > Customer payment > Reports**

1. The opportunity starts in the [CRM](#/crm).
2. The price is formalized in the quotation.
3. Once approved, the quotation is converted into a [sales invoice](#/sales-invoice).
4. The payment is recorded in *Accounting > Customer Payments* ([Accounting](#/accounting)).
5. The result appears in [Double entry](#/double-entry) and on the dashboards.

## Frequently asked questions

### Are a quotation and a proposal the same thing?

They are similar, but they live in different menus: *Quotation* and *Proposal*. Both list items and prices for the customer to approve. Choose the one that fits your process; if your company only needs a simple estimate, the quotation is enough.

### Does a quotation reduce inventory?

No. A quotation is only an estimate. Inventory movements happen on completed sales, purchases, returns, and transfers between warehouses.

### Can I reuse a quotation for another customer?

Yes. Use the duplicate action, when available in the list, change the customer, and adjust the items. If you prefer, create a new quotation from scratch.

### What happens to the quotation after it is converted?

It stays in the list as a historical record and is marked as converted. Billing is then handled through the generated sales invoice.

### Why does the tax not appear on the item?

Because the tax was not assigned to the item in the catalog. Open the item in *Product & Service > Items*, select the correct tax, and save. On the next quotation it will be filled in.

## Next steps

Once the quotation is approved, move on to the invoice and collecting payment.

:::related
sales-invoice, proposal, crm, product-service, accounting
:::