Quote Template

Standard Operating Procedure: Sales Quotation Preparation & Issuance

1. Document Control Block

• Document ID: SOP-FIN-TR-043
• Effective Date: October 11, 2026
• Version: 1.0.0
• Review Cadence: Quarterly
• Classification: Internal Operations / Sales Finance

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2. Executive Summary & Purpose

This Standard Operating Procedure (SOP) defines the protocol for preparing, reviewing, and issuing sales quotations (quotes). A quotation is a formal statement of the price and terms under which you offer goods or services. Consistent, accurate quotes protect margins, shorten the sales cycle, and build buyer trust. The included fill-in-the-blank quotation form (Section 8) is ready for immediate use in Word, Google Docs, or PDF form.

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3. Scope & Prerequisites

• Scope: Applies to all customer-facing price quotations issued by Template Registry sales staff, contractors, and authorized resellers.
• Required Tools & Software:
  • Quotation form (Section 8 of this SOP, printed or digital)
  • Current price list or rate card
  • Tax rate table for the customer's jurisdiction
• Prerequisites:
  • Confirmed customer requirements (quantity, scope, delivery location, timeline).
  • Approval authority for any discount exceeding standard thresholds.
  • A unique quote numbering sequence so every quote can be traced.

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4. Roles & Responsibilities (RACI Matrix)

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5. Step-by-Step Procedure

Phase 1: Gather Requirements

• Confirm the customer's full name or business name, contact details, and billing address.
• Document exactly what is being quoted: products, quantities, service scope, and delivery timeline.
• Note any customer-specific conditions: rush delivery, custom work, installation, or ongoing support.
• Check the current price list for every item; never quote from memory.

Phase 2: Build the Quotation

• Fill in each line item with a clear description, quantity, unit price, and extended price.
• Apply taxes using the correct rate for the customer's jurisdiction.
• Add shipping, handling, or travel charges as separate lines so the customer sees them.
• Apply any discount and show the original price crossed out or noted so the discount is explicit.
• Write clear terms: payment due date, quote validity period (e.g., 30 days), and what is excluded.

Phase 3: Internal Review

• Double-check every line item's math: quantity times unit price, subtotal, tax, and total.
• Confirm margins meet company policy; get manager approval for any discount above the standard threshold.
• Verify delivery dates against operations capacity before committing them in writing.
• Have a second person review quotes above the high-value threshold.

Phase 4: Issue and Follow Up

• Send the quote on company letterhead with a unique quote number and date.
• Record the quote in the sales log or CRM with the customer name, amount, and validity date.
• Follow up before the validity date expires: a reminder call on day 20 of a 30-day quote.
• If the customer accepts, attach the signed quote to the sales order as the source document.

Phase 5: File and Expire

• File accepted quotes with the order; file declined quotes with the reason noted for sales review.
• Mark expired quotes clearly so nobody honors a stale price.
• Review expired-quote reasons quarterly to improve pricing or scoping.

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6. Quality Assurance & Pro-Tips

Best Practices

• Quote number everything: Every quote gets a sequential number. It makes follow-ups, disputes, and audits simple.
• State the expiry date: "Valid for 30 days" protects you from honoring old prices when costs rise.
• List exclusions explicitly: Write what the quote does NOT include. Assumptions cause the most disputes.
• Itemize, do not bundle: Customers trust quotes they can read line by line.

Common Pitfalls

• Forgetting tax or shipping: An understated total that grows at invoice time destroys trust.
• Verbal prices: A price given on the phone and never written down will be remembered differently by both sides.
• No expiry date: Costs change; a quote without a validity period is an open-ended promise.
• Copy-paste errors: Reusing an old quote and leaving the previous customer's details in the header is embarrassing and risky.

Metric Thresholds

• Math Accuracy: 100% of quotes must pass a second review with zero calculation errors.
• Quote Validity: Every issued quote must carry an explicit expiry date.
• Follow-Up Rate: 100% of open quotes receive a follow-up contact before expiry.

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7. Frequently Asked Questions

• Q: What is the difference between a quote and an invoice?
  • A: A quote states the price you OFFER before the customer agrees. An invoice states the price the customer OWES after the work is done or goods are delivered. A quote becomes binding once both sides accept its terms.
• Q: How long should a quote stay valid?
  • A: Thirty days is the standard. Use shorter validity (7 to 14 days) when material costs are volatile, and longer (60 to 90 days) for large projects that need procurement review.
• Q: Should I include tax in the quoted price?
  • A: Show prices excluding tax and add the tax as its own line, unless local rules require tax-inclusive display. Either way, make it unmistakable which you are doing.
• Q: Can I change a quote after sending it?
  • A: Yes, but issue a revised quote with a new revision number (e.g., Q-1042 Rev 2). Never edit the original document silently.
• Q: What if the customer wants something not on the quote?
  • A: Treat it as a change request: document the addition, quote the extra cost separately, and get written approval before starting.

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8. Template Document

Copy the block below into your document editor and fill in the blanks.

QUOTATION

[Your Company Name] [Street Address] | [City, State ZIP] | [Phone] | [Email] | [Website]

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Quote To: Name: ____________________________________________________________ Company: _________________________________________________________ Address: _________________________________________________________ Phone: ________________________ Email: ____________________________

Quote Number: ________________ Quote Date: ________________

Valid Until: ________________ Salesperson: _________________

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Line Items

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Totals

Subtotal: $__________

Discount (%): -$______

Shipping / Handling: $__________

Tax (%): $______

TOTAL DUE: $__________

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Terms and Conditions

1. This quotation is valid until the date shown above.
2. Payment terms: ________________________________________________
3. Delivery / completion timeline: _________________________________
4. Excluded from this quote: ______________________________________
5. Cancellation policy: ___________________________________________

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Acceptance

I accept this quotation and agree to the terms above.

Customer Signature: ________________________ Date: ____________

Salesperson Signature: ________________________ Date: ____________