November 22, 2009
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Quotation
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The Quotation is the formal quote from the seller to the buyer for a quantity of goods, at a specific price, to be delivered at a specific time. The Quotation is provided within the context of the Basic Ordering Agreement. It has a validity time frame, and Purchase Orders placed during the Quotationas validity are accepted for delivery at the price stated.
Definition of a Quotation
A proposal to the buyer for the cost of goods to include prices, quantities, terms and conditions, delivery, and shipping charges.
Purpose of a Quotation:
The purpose of the Quotation is to provide the buyer with a proposal from the seller for the price of goods based on the quantities and delivery requirements requested by the buyer in the Request for Quotation. The Quotation is used to formally commit to a buyer for prices on specific quantities of goods for a specific period of time.
Process for a Quotation:
QTO is sent to Buyer.
Buyer sends Purchase Order to seller reflecting Quotation terms and conditions.
| FIELDS for a Quotation: | |
| 01 ROM (SELLER) | Seller providing the Quotation |
| 02 TO (BUYER) | Buyer Quotation sent to |
| 03 -- | FOB, blank |
| 04 SHIP TO ADDRESS | Address for goods to be shipped to |
| 05 QTO NUMBER | Assigned QTO number for reference |
| 06 QTO DATE | Date QTO issued |
| 07 DEL QUOTED | Quoted delivery date |
| 08 TERMS OF SALE | Letter of Credit; Direct Collection; Advance Payment |
| 09 SHIP VIA | Ocean, Air, Rail or Truck |
| 10 INCOTERM | FOB; CFR; CIF, or (other) |
| 11 QUOTE VALID FOR | Validity period of Quotation |
| 12 SHIP FM | Ship From commercial port |
| 13 SHIP TO | Ship To commercial port |
| 14 -- | FOB, blank |
| 15 ITEM NO. | Goods Quoted Item Number |
| 16 DESCRIPTION | Goods description |
| 17 UOM | Unit of Measure |
| 18 QUANTITY | Quantity of Unit of Measure |
| 19 UNIT VALUE | Unit value in USD currency |
| 20 AMOUNT QUANTITY | X UNIT VALUE = AMOUNT |
| 21 SUBTOTAL | Total value of items |
| 22 TAX | Total TAX ON SUBTOTAL |
| 23 REIGHT | Freight based on INCOTERM |
| 24 TOTAL | Total amount to be paid by Buyer |
| 25 USD$ | Amount in USD $ Dollars |
| 26 AUTHORIZED SIGNATURE |
Authorized Signature of Seller |
| 27 REMARKS | Remarks |