A quote is provided by a business to a customer in response to an enquiry about purchasing goods. The quote estimates the cost of supplying the goods. There is no legal contract when a quote is issued, as the customer can reject the quote or request changes. The business can also change prices or revoke the quote. A quote details the goods, estimated costs including taxes, delivery details, and how long the quote is valid for. A transaction only occurs if the customer agrees to the quote and the goods are delivered.

1. 3.9
QUOTES

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3.9 QUOTES
Cash Transactions Credit Transactions Other
Cash receipt
Cheque butt
Sales invoice
Purchase
invoice
Memo
Statement of
account
Order
Quote

4. © Michael Allison. Author’s permission required for external use.
Quote
 The customer has made an enquiry
to the business as to whether the
firm can supply goods and for how
much
 A quote is where the business then
issues an estimate of the sale to a
customer
Business
How much will it
cost to buy 80
shirts?
Customer
Quote
We can sell that to you for
$8,000 plus $800 GST for
a total of $8,800. Would
you like to buy?
3.9 QUOTES

5. © Michael Allison. Author’s permission required for external use.
Quote
TGS Clothing Supplies Quote No: 980
65 Feathertop Road
Melbourne 3000
QUOTE PREPARED FOR: Central Clothing Supplies
1804 Queens Road
North Melbourne 3051
DETAILS OF QUOTE:
Supply of 80 shirts @ $10 per unit:
Cost: $800.00
GST: 80.00
Total: 880.00
Deliver to above address,
Quote valid for 30 days only.
DATE: 10/3/2015 Signed: G. Billings
Business
The business making
the estimate
Customer
The customer who
has asked for the
estimate
Quote for goods
The estimate of how
much the goods will
cost.
Validity period
How long the quote is
valid for.
3.9 QUOTES

6. © Michael Allison. Author’s permission required for external use.
Quote
 There is no financial transaction when
a quote is issued:
 There is no legal contract between the
parties
 Customer is free to reject the quote or
ask for it to be modified
 Business is free to change the price or
revoke the quote
 There is a transaction when:
 The customer agrees to the quote
 The goods are actually delivered
by the business
Business
How much will it
cost to buy 80
shirts?
Customer
Quote
We can sell that to you for
$8,000 plus $800 GST for
a total of $8,800. Would
you like to buy?
Thanks, but we were
looking for a cheaper
price.
3.9 QUOTES
Actually, I can’t do it for
$8,000. I’ll have to quote
them at $9,000 plus GST

7. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
SQ13 X