This guide is in English for now. The tool itself works in your language.
Quotation › Quotation, estimate or proforma?
Quotation, estimate or proforma invoice?
All three tell the customer a price before the sale happens. They differ in how firm the price is and in what the customer does with them.
| Quotation | Estimate | Proforma invoice | |
|---|---|---|---|
| What it says | "This is my price." | "It should cost about this." | "This is the bill you will get." |
| How firm | Fixed until the validity date | Can change once the work is seen or started | Fixed: the deal is agreed |
| When | The customer is comparing suppliers | Repairs, building and custom work where the full job is not known yet | The order is agreed and the buyer needs a document to pay an advance, open a letter of credit or get a loan or approval |
| GST payable on it? | No | No | No |
| In GST returns? | No | No | No |
Quotation
Send a quotation when the customer has asked for a price and is likely to compare. Because it is a firm offer, give it a validity date and clear terms. If the customer accepts within that time, you are expected to honour the price. Companies and government offices often ask for three quotations before they buy anything; yours should be easy to compare (see what to put on a quotation).
Estimate
Send an estimate when you honestly cannot know the final cost: a car or machine repair before opening it up, renovation work before the walls are opened, a website before the content is ready. Say what the estimate is based on and what could change it, for example "If more wiring has to be replaced, it will be charged at ₹85 per metre." The printed estimate carries the line "This is an estimate. The final bill may differ."
Proforma invoice
A proforma invoice comes after the customer has agreed. It looks like the final bill (same items, rates and tax) but it is not a tax invoice and has no invoice number from your tax series. Buyers use it to release an advance, importers to open a letter of credit, and some to get internal approval. When the goods go out, you issue the real tax invoice.
Which one to choose here
In the quotation maker, pick Quotation or Estimate as the type. Each has its own number series (QT/… and EST/…). When the customer agrees, press Make invoice to raise the tax invoice on billing.niveshsahayak.in.