Difference between Quotation and Contrcact

[Former Member]

Dear All,

What is the Difference between Quotation and Contrcact?

In Which Scenario Quotation is used? and in which Scenario Contract is used?

Regards,

Suresh

[reazuddin_md]

Quotation is a proposal for respective goods & services. Quotation doesnt means that client gets the business. In simply you can assume, its a lead .

where as, Contract is mutual agreement for the transforamtion of goods & services under certain Terms & Conditions. You can check the order probablity for both the documents. Contract means, client got the business from the customer. where in Quotation, client may or may not get the actual business.

[Former Member]

Hi there,

An inquiry is what a prospective customer enquires for a particular product what he is inetersted in it.

A quotation is issued by the vendor to the customer with an offer for delivering a product/service . This offer is legally binding for the company within a specified time period.

Quotation gives the customer the following details : material price, discounts , taxes, payment terms etc,.. .

Regards,

Krish

[Former Member]

Dear All,

There is a scenario in which contract has been finalised between the company and customer. When coming to mapping that in SAP, it has been uploaded as quotaion. Actually it has to be uploaded as contract,but it has been uploaded as quotation.Now what are difficulties that i can face in future.

What are the technical advantages that can get if i use contrcat in the above scenario and what could be technical drawbacks if it is used as qotation instead of contract?

Regards,

Suresh.

[Former Member]

Please check conpy controls and item category controls of quotaion and contract. Then you will understand the difference.

Jagan

[Former Member]

Suresh,

Quotations are created with reference to Inquiry.

A quotation presents the customer with a legally binding offer for delivering a product or providing a service within certain fixed conditions. This offer is legally binding for the company within a specified time period.

By referring quotation customer will get information about the required material price, conditions like discounts , taxes, etc,.. .

once the customer content with all details then he can place an order with company by creating the contract to supply required quantity within stipulated time period.

Customer contracts are outline customer agreements that display when sales materials or services are sold within a certain time period.

Regs

Jagan