Can a Proforma Invoice be used as a Quotation?

📄 Using a Proforma Invoice as a Quotation

✅ Yes — in DaaiSuite a Proforma Invoice doubles as your Quotation document. The application does not ship a separate Quotation type because the Proforma already covers the same role: a non-binding, accounting-free price proposal you share with the client before raising a real, GST-compliant Invoice.

This article focuses on the quotation use-case — how to label, share, validate, and convert a Proforma when its purpose is “approve this price.” For the full Proforma form (fields, recurrence, billing items, GST behaviour, finalize flow), see the Proforma Invoice Guide.

🔍 Key Differences: Quotation vs Proforma Invoice

Conceptually a Quotation and a Proforma sit very close to each other. The table below shows where they overlap and where they differ — so you can be sure the Proforma covers your need.

✅ When It’s Safe to Use a Proforma as a Quotation

You can confidently treat a Proforma Invoice as a Quotation when:

• You’re sharing a price breakdown, taxes, and total payable with the client for review.
• The document clearly states it is non-binding and for estimation / approval only.
• You want the same fields, totals, and tax structure that the eventual Invoice will carry — so once approved, conversion is one click instead of a re-key.
• The client is comfortable receiving a document titled “Proforma Invoice” instead of “Quotation”.

💡 Why this works in DaaiSuite

• A Proforma carries a Draft status and a Proforma Number — totally distinct from Invoice numbering.
• It does not affect GST returns, revenue reports, or the client’s outstanding balance.
• It is excluded from accounting totals by design until you click Finalized.

🧾 How to Create a Quotation-Style Proforma

📍 Screen: Billing → Proforma Invoice → click Add (top-right). The Add Proforma Invoice aside opens on the right.

Fill the form the same way you would a normal Proforma — see the Proforma Invoice Guide for every field. The notes below highlight the choices that matter specifically when the document is going out as a quotation.

🔀 Choose Invoice Type

The Invoice Type toggle at the top of the form lets you decide whether the quote is tied to a project or stands alone:

• Client Invoice — pick this when you’re quoting a brand-new piece of work that has no project record yet (typical sales scenario). You only have to select the Client.
• Project Invoice — pick this when the quote relates to an existing project (e.g. a change-order proposal on an active engagement). Client information auto-fills from the project.

If the linked project has an Estimated Cost set, the system will alert you on conversion if the quoted total exceeds it — useful guard-rail for variation quotes.

🔁 Recurring Quotations

If the same quotation needs to be re-issued on a schedule (e.g. monthly retainer proposals, weekly subscription renewals), tick Is Recurring Invoice on the form to convert the Proforma into a recurring template. The system will then auto-generate fresh Proforma drafts on the chosen frequency.

For details of the recurring lifecycle (Start Date, End Date, Frequency, pre-reminder email), see the Recurring Invoice Guide.

🔧 Recommended Practices for Quotation-Use

The Proforma form is the same regardless of intent — these practices make sure it reads like a quotation when the client opens it.

• 🔖 Refer to the document as “Proforma Invoice (Quotation Purpose)” in your covering email or WhatsApp message if your client expects the word “quotation”.
• ✅ In the Notes field add a clear label such as “Provisional / Non-Final — for client approval only”.
• ✅ Add a validity period in Notes (e.g. “Valid for 15 days from issue date”). The Proforma form does not have a separate validity field, so Notes is the right place.
• ✅ Don’t worry about Invoice numbering — DaaiSuite already runs Proforma Number and Invoice Number on independent sequences. The client cannot mistake a Proforma for a tax invoice.
• ✅ Attach the scope of work, contract draft, or BOQ in the Documents field. On finalization these documents carry over to the resulting Invoice automatically.
• ✅ Set the Due Date to the date you would expect payment if the client accepts — it becomes the Invoice’s Due Date on conversion.

📍 GST behaviour reminder

• If the client’s state matches your company’s state → CGST + SGST are editable, IGST is locked.
• If they are in different states → only IGST is editable.
• The split is automatic. Make sure the client’s State is set on their profile and your company’s State is set under Settings → Primary Settings → Company Details.

📤 Sharing the Quotation with the Client

📍 Screen: Open the saved Proforma. The Share, Send Email, and Print buttons sit at the top-right of the aside header on the Details and Invoice View tabs.

💡 The PDF is a snapshot

Company name, address, GSTIN, state, and logo are frozen onto the Proforma at creation time. Even if you later update your company profile, the quotation PDF the client received remains exactly as it was sent — no risk of “the file changed after I approved it” disputes.

✅ Client Accepts → Convert to Invoice

When the client signs off on the price, you do not re-create the document.

1. Open the Proforma.
2. Click the Finalized button at the top-right of the aside header.
3. The system creates a real Invoice with a fresh, unique Invoice Number.
4. All billing items, quantities, prices, taxes, and attached documents are copied across exactly as quoted.
5. The Proforma’s status flips to Finalized and a Converted chip is added in the header.
6. The Finalized button is replaced with View Invoice, which jumps you to the new Invoice record.
7. From this moment the amount enters revenue, GST, and outstanding reports.

📌 Conversion guard-rails

• If the linked project has an Estimated Cost and the Proforma total is higher, you’ll see a confirmation alert before the Invoice is created.
• The company details snapshot (name, address, GSTIN, state, logo) is taken at finalization time and frozen on the Invoice.
• The Proforma stays as a historical record forever — it is never deleted on conversion.

⚠️ Things to Watch For

• One-way conversion. Once a Proforma is finalized, it cannot be reverted to Draft. If the client wants to change scope/price after acceptance, the changes happen on the resulting Invoice (or via a Credit Note if it’s already paid).
• No partial conversion. Finalize converts the entire Proforma into a single Invoice — there is no “convert only some line items” option.
• Edit window closes on finalize. While the Proforma is still in Draft you can edit, delete, share, email, or print it freely. After finalization the Edit and Delete buttons disappear.
• Non-binding ≠ unenforceable. A Proforma is not a contract by itself, but if the client emails an explicit acceptance (“Approved — please raise the invoice”), that exchange forms a binding agreement under Indian contract law. Treat the Proforma seriously, even though it carries no accounting weight.

✅ Conclusion

Yes, you can use a Proforma Invoice as a Quotation in DaaiSuite — and it is in fact the recommended approach when you want tax-ready formatting, automatic CGST/SGST/IGST handling, branded PDF output, and one-click conversion to a real Invoice. Just label it appropriately in Notes, share it via WhatsApp / Email / Print, and click Finalized the moment the client agrees. Because Proformas are kept out of the books by design, there’s zero accounting risk in using them as quotations.

💡 Tips

• Save your common quotation line items in Catalog — HSN, price, and tax % all pre-fill, cutting quote-prep time dramatically.
• Use the Client Invoice mode of the Invoice Type toggle when quoting prospective work that has no project yet.
• For multi-currency clients, the Today’s Currency Rate field lets you freeze a quote rate so the converted Invoice doesn’t shift if the rate moves.
• Always verify the Invoice Date and Due Date before clicking Finalized — those values pass straight through to the Invoice.
• Keep client State accurate on the client profile so CGST + SGST vs IGST is picked correctly the first time.
• For the full Proforma form reference see the Proforma Invoice Guide; for the resulting Invoice see the Invoice Guide.