Quotation in SAP SD
Complete Guide with Process, Configuration & Examples
In SAP Sales and Distribution (SAP SD), a quotation is an important document used during the pre-sales process. It is created in response to a customer inquiry or directly based on the customer’s requirements.
A quotation provides the customer with information such as material, quantity, price, discounts, validity period, delivery information, and other commercial conditions. It helps businesses formally communicate their offer before the customer places an order.
In this blog, we will understand what a quotation is in SAP SD, how the quotation process works, important transaction codes, configuration, and a practical example.
What is a Quotation in SAP SD?
A quotation in SAP SD is a legally or commercially relevant sales document that contains an offer made by a company to a customer.
A quotation normally includes:
Customer details
Material or service details
Quantity
Price
Discounts and surcharges
Taxes
Delivery information
Payment terms
Validity period
SAP SD Pre-Sales Process
Quotation is generally part of the pre-sales process in SAP SD.
A typical process looks like this:
Customer Inquiry → Quotation → Sales Order → Delivery → Billing
For instance:
Inquiry: Customer asks, "What is your price for 500 units?"
Quotation: Company offers 500 units at ₹1,000 per unit, valid for 30 days.
Sales Order: Customer accepts the quotation and places an order.
Delivery: Company delivers the goods.
Billing: Company creates an invoice for the customer.
Inquiry vs Quotation in SAP SD
Inquiry | Quotation |
Customer's request for information | Seller's formal offer |
Usually contains customer requirements | Contains proposed prices and terms |
Does not represent a firm offer | Usually has a validity period |
Can be followed by a quotation | Can be followed by a sales order |
For instance:
A customer sends an inquiry asking for the price of 1,000 units.
The company responds by creating a quotation with:
Quantity: 1,000
Price: ₹500 per unit
Discount: 5%
Delivery: 10 days
Validity: 30 days
Quotation Document Type in SAP SD
In standard SAP SD, the quotation document type is commonly:
QT – Quotation
The exact document types used in an implementation can be different because companies can create their own customized document types.
For example:
QT – Standard Quotation
ZQT – Custom Quotation
ZQ1 – Special Customer Quotation
Steps to Create a Quotation in SAP SD
Go to T-Code VA21 then provide the Quotation Type and Organizational Data.
STEP 2: Enter the Sold-to Party, Ship-to Party, and Customer Reference in the header section. In the line-item section, enter the Valid to date, Material, Quantity, and Amount.
Display Quotation Document with T-Code VA23
Conclusion
The Quotation Process in SAP SD helps organizations turn customer requirements into a clear and structured commercial proposal. By capturing details such as materials, quantities, pricing, discounts, delivery dates, and quotation validity, SAP provides a reliable way to manage offers before the customer commits to an order.
A strong understanding of quotation processing is valuable for SAP SD consultants because it supports accurate sales document configuration and smooth integration with the subsequent sales order process. When properly configured, quotations improve visibility, reduce manual effort, and provide a consistent approach to managing customer offers throughout the sales cycle.
Great breakdown of quotation handling in SAP SD. I recently applied similar pricing steps in a client project. For anyone exploring sales and distribution topics further, this resource on drive mad online is also handy. drive mad online
This is an excellent and well-structured guide! The breakdown of the Inquiry vs. Quotation process is really helpful for beginners, and I appreciate the clear steps for VA21. Thanks for sharing this comprehensive overview.