Definition
A quotation is a written, priced offer from a seller to a customer stating what will be supplied, at what price and on what terms, for a limited period.
What is a quotation used for?
In B2B trade a quotation, or quote, is usually the first formal document in a sale. It lists items, quantities, unit prices, discounts and tax, plus delivery and payment terms and a validity date. Quotations for project supply often open with a formal cover letter addressed to a named person, with Ref, Attn and Subject lines, a format that is standard across the Gulf.
Example: an electrical wholesaler quotes 200 cable trays at USD 23 each plus tax, valid for 30 days, with delivery in 2 weeks.
A quotation isn’t an invoice, and nothing is owed until the customer accepts it, usually by issuing a purchase order. A proforma invoice comes later, when the buyer intends to order. For a step-by-step format, read how to write a B2B quotation customers say yes to.