iv. How to create a quotation and proforma invoice.

Quotation—means to provide a price estimation to a customer who is inquiring about a product or service.

“Proforma” means to confirm the agreed-upon price and terms for a sale where final details are not yet certain. The purchase has been agreed to, but final details (like quantity or delivery address) may still change.

Click on Create Quotes. 

Go and click on the “create quotes” option, given in the action bar. 

This page allows users to create and manage quotations for clients. You can enter company and project details, add products or services, and calculate VAT, discounts, and totals. 

Condition 

Please remember the following information, given below: 

• The system will not allow selection of a product in the “add product” section of a quotation, proforma invoice, or sales invoice unless the purchase bill for that product has been booked against inventory. 

• Inventory items must first be added in the Inventory module. 

• A purchase bill must be recorded against the company’s inventory account for the added product. Batch information is mandatory when booking the purchase bill. 

• Products become available for sales documents only after the purchase bill is successfully posted. 

• This requirement applies only to inventory (product) items and does not apply to service items. 

• Services can be added by entering the service title. If the service does not already exist, create it in the Service Section. Unlike inventory items, services do not require booking anything before being added to a quotation or invoice in the “product section” while creating any quotation or invoice. 

• Select the Quotation. 

Go to the right top corner of the quotation, click on it, and there are two options mentioned in the drop-down menu: Quotation and Proforma.

• Now first select the Quotations. 

• Enter reference no., or the system will automatically generate a quotation reference number. e.g. XYYZ-12345 

• Enter the company name of the client or company. e.g., XYZZ Trading LLC (1).

If the customer’s name is not available, please refer to the section “How to Add a Customer Name” for detailed instructions. (1) 

• Click on project, and select an existing project to link the quotation.

(If you don’t find the project name, then go to the section “How to add project detail.”). But this option is not mandatory. (2) 

• Use Project Details—Check this box to auto-fill details from the selected project.

• Enter the quotation date, the date on which the quotation is created. 10/1/2025 (default is today). 

• Enter the valid until date, which means the expiry date for the quotation’s validity, e.g., 11/15/2025. 

• Enter the discount rate mentioned in the given quotations and apply a percentage discount to the entire quotation. e.g., the discount rate is 10% or 0 (if no discount was given). 

• “Enter the days validity” means the number of days the quotation remains valid. e.g., 45 days. 

• Click and select the currency for the quotation (e.g., AED). 

• Enter the Bank Name and account name. Choose the company’s bank and account details for receivables. e.g., Mashreq Bank. 

Click on Add Products. 

• Click and select the item name as product or service from the dropdown list. e.g., iPhone 17. 

If you don’t find your product and service in the product/item field, then go to the section “How to Add Product and Service in Item Field.” (3) 

• Enter the account name and choose the related accounting category.

The accounts field depends upon the item if you are going to add a specific item/service name in the item field. It will automatically show you two options in the account head. i.e., product revenue or service revenue. Just select it, and it will automatically add the item to their respective account.

OR 

Second, if “Others” is selected in the “add product section” to book any revenue head while creating a quotation, proforma invoice, and sale invoice, the appropriate Chart of Accounts must be selected manually. 

And if you select “others” in the item section and still you don’t find your account head in the account field, to select the account code, go to charts of accounts, click on profit and loss, and that page will allow the user to create a new account head. 

• Enter a description like a brief detail of the product.

e.g., the quotation for the product or service will be valid in a given time period. After that time, the price would fluctuate as per the exchange rate. 

• Enter the unit price, the price per unit of the product/service. e.g., AED 1000. 

• Enter the quantity, the number of items being quoted. (We enter quantity only for products, not for service). For service, we add 1 in quantity.

• Net price would be automatically calculated once the quantity is updated. e.g., if the unit price is AED 1,000, then the cost for 100 pieces would be AED 100,000. 

• Click and select the applicable VAT rate. e.g., 5% standard. 

• The automatic system would calculate the VAT amount, e.g., AED5000. 

• “Enter Gross amount” means the total amount including VAT. E.g., the gross amount would be AED105000.

• inclusive checkbox, here it works like this: in the unit price, the VAT amount is already added. Here, the system only deducts and calculates the original price of the product and the calculated VAT amount from the unit price.

When you click on the inclusive button, it means the VAT amount is deducted from the total amount. And when you click Off, it means the VAT amount is included.

• Use + to add a new product row and – to remove one. 

• Enter Summary; you can also add comments or special terms for the invoice in the text area provided. 

• The summary also automatically calculated your net amount, the discount applied to the overall amount before or after the VAT amount, and the total payable amount. 

• Select the authorized persons or department responsible for approving or signing the quotation. There are three options given for the signature for responsible persons. 

• After entering all information successfully, click on “save,” which saves the quotation and adds it to your records. 

Once you save the button, it will add the new quotation into the quotes page given in the sales module. 

• Select the Proforma. 

To create a proforma invoice, follow the steps given below. 

Go to right top corner of the quotation, click on it, there are two options given in the drop-down button: Quotation and Proforma. 

• Select the proforma invoice. 

• Enter the reference no. to identify the invoice, or the system will automatically generate a proforma invoice reference number until the input is provided. E.g., Proforma INV-786 

• Enter the company name of the client. e.g., XYZ Trading LLC. 

If the customer’s name is not available, please refer to the section “How to Add a Customer Name” for detailed instructions. (1)(1) 

• Click on project, and select an existing project to link the quotation.

(If you don’t find the project name, then go to the section “How to add project detail.”). But this option is not mandatory. (2)(2) 

• Use Project Details—check this box to auto-fill details from the selected project. 

• Enter the proforma date, the date the proforma is created. 11/10/2025 (default is today).

• Enter the valid Until means expiry date for the quotation’s validity, e.g., 30/10/2025. 

• Enter the days validity, which means the number of days the proforma remains valid. e.g., 19 days 

• Select the currency of the proforma invoice (e.g., AED). 

• Enter the discount rate mentioned in the given proforma and apply a percentage discount to the entire proforma invoice. e.g., the discount rate is 20%.

• Enter the company’s bank name and account. Choose the details for payments. 

Click on Add Products 

• Click and select the product or service from the dropdown list.  e.g. iPhone 17 pro max, Consultancy. 

• Enter Account name Choose the related accounting category.  

There are types of accounts depend upon item field, if you are going to add specific item/service name in item field. It will automatically show you two options in account head. i.e. product revenue or service revenue. just select it and it will automatically deduct the file. 

OR 

Second If “Others” is selected in the “add product section” to book any revenue head while creating quotation, proforma invoice and sale invoice, the appropriate Chart of Accounts must be selected manually. 

And still, you don’t find your account head in account field by selecting “others”, for select the account code, go to charts of accounts, click on Profit and loss, that page will allow user to create a new account head. 

• Enter description like brief detail of product.  

For example; proforma for the product or service will be valid in given time period.  

• Enter unit price, the price per unit of the product/service.  e.g. AED1000 

• Enter Quantity of items. (We enter quantity only for products not for service). 

• Net price would be automatically calculated.   e.g. If the unit price is AED 1,000, then the cost for 100 pieces, would be AED 100,000 or service price will be automatically updated. 

• Click and select applicable VAT rate. e.g. 5% standard. 

• Automatically system would calculate Vat amount. e.g. would be AED5000 

• Enter Gross amount means Total amount including VAT. e.g. gross amount would be AED105000. 

• inclusive checkbox, here it works likes – in unit price VAT amount is already added. Here system only deduct and calculate the original price of product and calculated VAT amount from the unit price. 

When you click on, the inclusive button, it means Vat amount is deducted from total amount. And when you click Off, the butt it means Vat amount is Included.  

• Use + to add a new product row, – to remove one.

• Enter Summary, you can also add comments or special terms for the invoice in the text area provided 

• Summary also automatically calculated your net amount, discount apply on overall amount, before or after VAT amount and total payable amount. 

• There are three options given for the signature for responsible persons. Select the authorized persons or department responsible for approving or signing the proforma invoice.  

• After enter all information successfully, click on saves the proforma invoice and adds it to your records. 

• Once’s you submit the button; you will come on front screen of customer window.