Create and confirm sales quotations

Completed

Issuing a quotation resembles the process for issuing a sales order. Most functionality that is found on the Sales order page is also available on the Sales quotation page. Quotations that are accepted by customers are converted to sales orders. Quotations that are created for a prospect can only be confirmed when you convert the prospect to a customer.

You can use sales quotations to:

  • Issue sales quotations to customers or prospects.

  • Update sales quotations.

  • Convert sales quotations to sales orders.

  • Create sales quotation templates.

  • Mass-create, update, and delete sales quotations.

  • Copy sales quotations.

  • Apply trade agreements, supplementary items, and charges to sales quotations.

  • Use enhanced delivery date features.

  • View the bill of material (BOM) for sales quotation line items and make updates to the BOM.

  • Include sales quotation items in master scheduling.

You can create sales quotations on customer requests and in mass by using quotation templates. Additionally, you can change quotations and reprint them. You can also follow up on the status of your sales quotations, such as those that are canceled, lost, and won.

Watch this video to learn how to create a sales quotation.

To create a sales quotation from the Sales and marketing module, go to Sales and marketing > Sales quotations > All quotations.

You can select a sales category in the sales line without selecting an item if the product on the sales quotation does not have an item number.

Go to Sales and marketing > Setup > Quotations to configure the following options:

  • Type - Indicate the kind of sale that the quotation is. Types can be used for statistics for sales management because they help track and analyze the sales quotations. Examples of types include Campaign, New sale, and One time.

  • Template groups - Create groups for quotation templates. For example, a company can have a holiday sale. As part of the sale, there can be three templates with different product offerings. Use template groups to group all three templates as part of the holiday sale.

  • Document titles - Create commonly used or generic titles for quotation documents. For example, you can use a specific title for all Autumn offers. These titles are printed on quotation documents.

  • Document introductions - Create and store common salutations and introductions to quotation documents. These introductions are printed on quotation documents.

  • Document conclusions - Create and maintain standard concluding sentences or paragraphs for quotation documents. These conclusions are printed on quotation documents.

Default values

You can set up quotation default values in the Sales quotations FastTab on the General tab of the Accounts receivable parameters page in the Accounts receivable module.

Screenshot of the Accounts receivable parameters page showing Sales quotations default values.

You can set up the default values in the following fields:

  • Days campaign expires - Enter the number of days for the quotation expiration date. When you create a quotation, the expiration date of the quotation is automatically calculated as today's date plus the number of days that are specified in the Days campaign expires field.

  • Days before follow-up - Enter the number of days for the quotation follow-up date. When you create a quotation, the Follow-up date of the associated activity is automatically calculated as the Expiration date minus the number of days that are specified in the Days before follow-up field.

    Screenshot of the Expiration date and Follow-up date fields.

  • Quotation type customer - This field refers to the Type setup table that was previously explained. The type of quotation can default when a sales quotation is created.

  • Skip sales quotation referenced data during change tracking - Allows you to select if changes in data referenced by quotations are included in an incremental export. If you choose not to include these quotations or lines, the incremental exports will run more quickly.

    You can find the Data entity export setup Fast Tab in the Accounts receivable parameters page, under the General tab, and as shown in the following screenshot.

    Screenshot of the Skip sales quotation referenced data during change tracking parameter.

Update a sales quotation

When accessing a sales quotation, each sales quotation has a quotation status, found at the top right of the quotation, as follows:

  • Created - When the sales quotation is generated, the status is set to Created.

  • Sent - The quotation is sent. On the Sales quotation page, from the Quotation tab on the Action Pane, select Send quotation in the Generate group. This selection opens the Send quotation page, where you can send a printed quotation.

  • Confirmed - The quotation is confirmed and converted to a sales order. The confirmation date is inserted into the quotation and the quotation is closed for editing. From the Follow up tab on the Action Pane, select Confirm, which opens the Confirm quotation page.

  • Lost - The quotation is lost, and your company did not win the quote. From the Follow up tab on the Action Pane, select Lost in the Status group. This selection opens the Lose quotation page, and you are then prompted to enter the reason that the sales quotation is lost. Then, the status will be updated to Lost and the quotation will be closed for editing.

  • Canceled - The quotation is canceled because the customer no longer needs the requested goods. From the Follow up tab on the Action Pane, select Cancel, which opens the Cancel quotation page. When you have canceled the quotation, the status is updated to Canceled and is closed for editing.

Screenshot of a Sales quotation with the status of Created.

Before you convert a quotation to a sales order for a prospect, you can manually convert the prospect to a customer by using the Convert to customer in the Modify group on the Follow up tab.

Confirm a sales quotation

When the sales quotation is confirmed, the system performs the following tasks:

  • Creates a sales order

  • Copies all values from the sales quotation to the sales order

  • Creates a quotation confirmation journal record that can be accessed by selecting Sales and marketing > Sales quotations > Quotation update > Sales quotation confirmations

  • Inserts the confirmation date into the sales quotation as the current system date

  • Sets the quotation status to Confirmed

  • Closes the sales quotation for editing

Sales quotation template currency

If the quotation template is in a different currency than the customer account, the currency of the customer account is always used. However, to keep the currency from the template, change the currency on the newly created sales quotation. Follow the prompts for how to update currency, exactly as you would in sales orders.

Periodic updates

Many sales quotations can be updated at the same time. The options for mass update are found in the Sales and marketing > Sales quotations > Quotation update menu.

The following are options for mass updates:

  • Cancel quotation - All sales quotations can be canceled at the same time.

  • Lose quotation - All sales quotations can be lost at the same time.

  • Mass create quotation - All sales quotations can be created at the same time.

  • Confirm quotation - All sales quotations can be confirmed at the same time.

  • Send quotation - All sales quotations can be printed at the same time.

Printing sales quotations

If sales quotation information changes, you can reprint it by selecting Send quotation in the Generate group on the Quote tab on the Action Pane. This method not only activates the quotation to be reprinted but creates a new quotation journal record.

Scenario

A customer requests a quote for five LCD Television HD Black 42 inches. The salesperson creates the sales quotation, prints it, and mails it to the customer. The printing of the sales quotation creates a quotation journal record with a Quotation journal ID of QA-100001-1.

After receiving the quotation, the customer contacts the salesperson and changes the quantity of battery packs from five to ten. The salesperson updates the sales quotation and generates the quotation. This action not only prints the sales quotation, but also creates another contractual offer and is recorded as a new sales quotation journal.

The printing of this sales quotation creates another quotation journal record. However, this one has a Quotation journal ID of QA-100001-2.

Only the most recent quotation is used when confirming to a sales order.

Copy from all

You can use the Copy from all feature to save time and prevent sales quotation information from being newly created and entered. Additionally, you can use this feature to copy the whole quotation or specific pieces of different quotations.

The Copy from all feature copies the same information as in sales orders. However, the information is only from other sales quotations. You can access the From all button in the Copy group on the Action Pane from the Sales quotation page.

The Copy from all page displays a list of sales quotations. You can select the sales quotation or the sales quotation line items to copy. If you select the Select all option on the quotation line, all the sales quotation lines underneath are copied to the new sales quotation. If you do not want to select all the quotation lines, manually select the Mark check box on the appropriate quotation line(s). Quotation lines can be copied from one or more sales quotations.

Trade agreements and supplementary items

You can use trade agreements to set up discounts and prices for sales orders and sales quotations. Trade agreement options include:

  • Sales price - The customer receives special pricing for certain items.

  • Line discount - The customer receives a discount if the quantity on a sales quotation line meets the minimum quantity that is required by the agreement.

  • Multiline discount - This discount works the same as the Line discount with one difference: the customer receives a discount if the quantity on all the applicable lines in a sales quotation meets the minimum quantity that is required by the agreement.

  • Total discount - The customer receives a discount on the whole quotation. You can access the trade agreement functionality from the General tab on the Action Pane by selecting the Trade agreement button in the Customer group.

Another option that you can access from the General tab is the Supplementary sales items that are set up for items in relation to the customer on the sales quotation. This option can also be found from the sales quotation line by selecting Sales quotation line > Supplementary items. This functionality works the same as it does for sales orders.

For more information about agreements, see Configure and use agreements in Dynamics 365 Supply Chain Management.

Charges

You can use charges to add costs to a quotation or to specific items of a quotation. Charges could be used for freight or services.

To add charges to the whole sales quotation on the Sales quotation page, on the Quotation tab on the Action Pane, select Maintain charges in the Charges group.

To add charges to a quotation line item, select the Maintain charges option from the Sales quotation line menu in the Lines section of the Sales quotation page.

This functionality works the same as it does for sales orders. Charges are copied when the quotation is confirmed to the sales order.

Working with BOMs

On the Sales quotation page, in the lines area, select Update line > Based on BOM or formula in the Calculate group. You can use this option to view the BOM for sales quotation line items, to update the sales price, and to show the effect of quantity changes on costs.

You can use the BOM calculation option to:

  • Select the options for configurable BOM items and recalculate the sales price for the item.

  • Recalculate costs if raw material costs increase but are not updated in the system.

  • Show the effect of quantity changes on the cost.

  • Request that the salesperson change the quantity and then view the cost difference and margin difference based on manufacturing requirements.

With this information, the salesperson can decide to offer the customer a better price on the larger quantity. This functionality works the same as it does for sales orders.

Multiple ship to addresses

The delivery address for a sales quotation and its line items defaults from the customer's address. However, you can set the delivery address for the whole quotation to one of the customer's alternative addresses or have the delivery address be designated by the quotation line item. With this method, you can ship different items from the quotation to different customer addresses.

Price simulation

Open Sales and marketing > Sales quotations > All quotations. Select a sales quotation from the list page and select the Quotation number link. Go to the Details page and then select Price simulation on the Quotation tab on the Action Pane.

Use the Run price simulation page to create a price simulation for a selected quotation header or a single quotation line by modifying the discount percentage, margin, or contribution ratio.

After the simulation is run, you can compare the current quotation totals to the simulated totals.

On the Run price simulation page, you can experiment with adjusting the expected revenue or profitability of your quotation based on the desired unit price, discount amount, discount percentage, total amount, margin, or contribution ratio.

When you are satisfied with the target figures, you can apply the suggestion to the quotation line, and its price-related fields will be updated accordingly. You can create as many price simulations as you want.

When you select New, the price conditions from the current quotation line are copied to the page. You can then modify values in any of the price-related fields to the target fields. A change in one of the fields will trigger recalculation in all the other fields.

For the system to calculate the sales margin and contribution ratio, the product's unit cost must be known. Use the Simulated prices tab for a detailed view of the original prices, proposed changes, and their effect on the quotation totals.

An animation of Simulated prices and Run price simulation.

As a rule, when a simulation that sets a new amount is applied to the quotation line, the system recalculates and enters a new value in the Unit price field. If the simulation is based on a new margin or a new contribution ratio, only the Net amount field is updated and the Unit price is blank. In both cases, any discounts that were on the quotation line before simulation will be deleted. ‚Äč