Wholesalers, distributors and contractors quote far more than they bill. The trouble usually starts when a quotation is accepted and someone retypes it as an invoice — with a price, a quantity or a rate typed wrong.
A workflow that holds up
- Quote — items, quantities, prices. Number your quotations in their own series, separate from invoices.
- Follow up — note when you’ll call back. Most quotations are won or lost on the follow-up.
- Convert — when the customer says yes, turn the quotation into an invoice. The lines carry over; nothing is retyped.
- Collect — record payments against the invoice, part by part if that’s how they pay.
Should a quotation show GST?
A quotation is an offer, not a supply. Tax is charged when the invoice is issued, at the rates that apply on that day. If a rate changes between quote and bill, the invoice must use the new one. Many shops show “plus GST as applicable” on a quotation for exactly this reason.
In Billyng
Quotations and invoices are numbered in separate series for each GST number. Converting a quotation creates the bill from its own lines, and charges each product’s GST rate on the day of billing. If a product has since been removed from your catalogue, Billyng tells you which one, rather than billing something you no longer sell.