Purchase Quotation: Items Section

Use this section to add and define items to be quoted.

Items section comprises 2 tabs, the Goods tab and the Services tab.

Under the Goods tab, you can add one or multiple goods (items of the item types Inventory, Fixed assets or Non-inventory) you want to purchase and enter information about them. Also, you have to specify shipment terms for those goods and select a warehouse to which you plan to receive the added goods. To define shipment terms and provide warehouse information for quoted goods, you have to fill in the following fields: 

Field/Option

Used for

Warehouse

Select a warehouse from the list of warehouses where you intend to store the quoted goods.

  • The warehouse is provided automatically once you select a purchasing manager being retrieved from the manager's employee record created in the Employee directory. It is a warehouse set as a default warehouse to which the manager (an employee who performs duties of a sales or purchasing manager) allocates purchased goods. If no specific warehouse is assigned to the selected purchasing manager or no purchasing manager has been specified in the document, the default warehouse defined in My company settings will be provided in this field when you save the document. Still, you can select an alternative warehouse instead of one that is assigned to the purchasing manager if necessary.
  • It is a required field if at least one item has been quoted. In this case, if you delete this autocompleted warehouse and do not select an alternative one, you will not be able to save the document. 
  • If multiple warehouses are not allowed in the system (Multiple warehouses option is turned off in My company settings), the Warehouse field will not be displayed on the form. All reservations or reduction of in-stock quantity of goods will take place for the default warehouse selected in My company settings. For more details about defining inventory management settings, see My Company Settings: Inventory Tab.

Incoterms

Select the Incoterms which are relevant to your business situation. The selected Incoterms will be copied to subsequent purchase documents created based on this purchase quotation. 

  • Incoterms that the given vendor usually uses are provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change the autocompleted Incoterms if necessary. 

Destination

City to which quoted goods have to be transported if the purchase quotation is accepted by your company. The selected destination city will be copied to subsequent purchase documents created based on this purchase quotation. 

  • Destination to which goods are usually delivered by the given vendor is provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change the autocompleted destination if necessary.

Method of delivery

Select a method of transporting quoted goods to your company or other desirable location from the list of delivery methods added to the system or create a new method of delivery. The selected method of delivery will be copied to subsequent purchase documents created based on this purchase quotation. 

  • Method of delivery that is usually used by the given vendor is provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change it if necessary. 


To quote a service or services, go to the Services tab, add a new service (items of the item types Service) and enter details about it. No warehouse or shipment terms have to be selected for services, as they are not subject to inventory management and are rendered, not shipped. Thus, the mentioned above fields are absent under the Services tab. 


You add both goods and services as a line item.
 

Goods (pic)

Displays the total number of line items added under the Goods tab.

 

Services (pic)

Displays the total number of line items added under the Services tab.


The line item is a line structure that contains an item and item details. The line item is comprised of a number of fields, such as quantity, price, net amount, and so on.
Line item fields are almost identical for goods and services, except for some fields present for goods are absent for services.
To add a new line item, click the +Add new button above the table used for listing added line items.
If you add a line item, you have to fill in all required fields of this line item to be able to save the document. If you fail to fill in all required fields, you can also delete the line item to be able to save the document.

Line Item Fields

Field

Used for

Goods/Services

Select a purchase item (good or service) from the list of previously created items or create a new one.

If you select an item from the list, certain item details will be provided automatically as the system will retrieve the relevant data from the respective item record, a base price list for the item and other related documents.

  • It is a required field. If you do not select an item to be quoted, you will not be able to save the document.

Unit

A unit of measurement, whether it is a piece, a kilogram or a liter, etc.

  • A base unit of measurement specified for the item is provided automatically.
  • If several units of measurement are defined for the item forming the item's set of measurement units, you can select a unit from the set that is most suitable in a particular case. However, this unit will be used only for displaying quantities in the document, all inventory and accounting transactions will use the base unit of measurement into which the selected alternative unit will be converted according to the specified conversion ratio.
  • If you mistakenly select a unit that does not belong to the set of measurement units specified for the item, this unit will be automatically replaced with the base unit. 
  • It is a required field. If you delete the unit and do not select an alternative one from the set, you will not be able to save the document. 

Available

The total quantity of the item that is available for sale. It is the quantity of the item you currently have in stock and expect to receive from vendors excluding the reserved quantity.

  • This quantity is provided automatically and you cannot override it.
  • If you select an alternative measurement unit for the item, the total quantity available for sale will be automatically updated.
  • The field is absent for services.

Quantity

A number of items you want to purchase.

  • The quantity is defined for the selected unit of measurement.

Price

The price for one item defined for the selected unit of measurement. The price is set in the currency of the document.

  • The price is retrieved from one of purchase quotation previously received from the selected vendor containing the most recent item price in the currency of the given purchase quotation. However, you can change this price if necessary.
  • The price is either VAT inclusive or VAT exclusive depending on whether the Price includes VAT option is turned on or turned off. When you activate or deactivate this option, the price is recalculated.  

VAT

Select a VAT rate that is set by the vendor for the quoted item.

VAT rates are retrieved from the VAT rate directory. Depending on the selected item, the standard rate, reduced rate or an exempt rate is suggested automatically if you purchase goods/services within the country of your registration (domestic aсquisition). If you purchase goods/services from VAT-registered businesses in other EU and non-EU countries, the export rate is automatically selected. If your vendor is not registered as a VAT payer, the No VAT type is selected. However, you can change any of the autocompleted rates if necessary.

  • It is a required field. If you delete the autocompleted rate and do not select an alternative one, you will not be able to save the document.

Net amount

It is the computed field.

Net amount - the total price for the quoted goods or services excluding VAT charges. 

  • If the price for one quoted item is VAT exclusive, the calculations are the following:

Price x Quantity

  • If the price for one quoted item includes VAT, the net amount is calculated in the following way:

Total amount / (1 + VAT rate / 100 %)

VAT amount

It is the computed field.

VAT amount - VAT contained in the total amount which is inclusive of VAT.

  • If the price for one quoted item is VAT exclusive, the calculations are the following:

Net amount x (VAT rate / 100 %)

  • If the price for one quoted item includes VAT, the VAT amount is calculated in the following way: 

Total amount - Net amount 

Total amount

It is the computed field.

Total amount -  the total amount of line item goods or services in the specified currency including VAT.

  • If the price for one quoted item is VAT exclusive, the calculations are the following:

Net amount + VAT amount

  • If the price for one quoted item includes VAT, the total amount is calculated in the following way:

Price for one item including VAT x Quantity 

 

Note: Although net amount, VAT amount and total amount are computed automatically based on the price and quantity indicated as well as on the selected VAT rate, you can override the computed values triggering the update of other values.

Advanced line item fields

Not all line item fields are displayed by default. To enable such fields, you have to turn on the extended mode for line item by clicking the More button above the list of items.

On enabling the extended mode, the following fields appear:

Field

Used for

Description

Add a description of the item.

In stock

The total quantity of the item stored in the selected warehouse as of the document date.

  • If you select an alternative measurement unit for the item, the total in stock quantity will be automatically updated.
  • The field is unavailable for editing, you can only view the indicated amount being retrieved from the Inventory journal.
  • The field is absent for services.

Expected

Displays the quantity of the item that is expected to be received from vendors in the future based on open purchase orders.

  • The field is uneditable, you can only view the indicated amount being retrieved from the open purchase orders.
  • If you select an alternative measurement unit for the item, the expected quantity will be automatically updated.
  • The field is absent for services.

Reserved

Displays the quantity of the item reserved by customers. The reserved quantity is deducted from the quantity of the item available for sale.

  • The field is uneditable, you can only view the indicated amount being retrieved from the open sales orders.
  • If you select an alternative measurement unit for the item, the reserved quantity will be automatically updated.
  • The field is absent for services.

Discount %

Discount rate set by the vendor for your company, in case the vendor provides the discount for your company on a regular base. A percent of an original price by which the item is discounted.

  • The discount rate specified for the given vendor is provided automatically once you select the vendor. However, you can change it if necessary. 
  • If you change the discount rate, values in the fields Discount amount, Net amount, VAT amount and Total amount will be recalculated and updated. 

Discount amount

Amount that is taken off of the item price. It is calculated according to the specified discount rate.

  • You can enter the discount amount manually. Then, values in the fields Discount rate, Net amount, VAT amount and Total amount will be automatically recalculated and updated. 

VAT rate, %

Displays VAT rate (in percentage) according to the chosen VAT type. The field is unavailable for editing and cannot be overridden.


If you want to turn off the extended mode, click the Less button.

Note: After turning off the extended mode, advanced item details will persist.


More information

Purchase Quotation
Purchase Quotation: General Area