Create a new estimate
An estimate is an educated guess of what you think a job may cost, without committing to prices and terms and isn’t binding. These are useful, for example, if you’re unable to guarantee prices of materials or labour, or are unsure about the size of the job.
Creating estimates in Sage Business Cloud Accounting is easy and they don’t affect your account balances. Once your customer accepts an estimate, you can convert it into an invoice which automatically updates your ledgers with the values of the original estimate, saving you even more time.
- Go to Sales, then click Quotes & Estimates.
- Click New Estimate, then enter the following information:
|Customer *||Enter the customer’s name. As you start to type a list of customers appears and you can click the required customer.
Alternatively, to add a new customer, click the arrow then click Add a customer. Enter the relevant information, then click Save.
|Created *||Enter the date of the estimate.|
|Expires||This is the date the estimate expires and is usually 30 days from the estimate date.
If required, you can overwrite this date or, if you want to leave the estimate open, delete this date and the estimate won’t expire.
|Reference||Enter a reference, for example, a job number.|
|Invoice Address *||If there’s a main address in the customer’s record, this appears here automatically.
If there is no address on the customer’s record, click Add a main address then enter the address and click Update. This doesn’t update the address in the customer’s record.
|Delivery Address||By default, the delivery address is the same as the customer’s main address.
If you don’t want to use this address, click the Edit button then select whether you want to use the invoice address, no address or a custom one. If you select Custom, enter the address. To save the changes, click Update.
* These details are compulsory.
If you don’t want to add a product or service to the estimate, skip to step 6.
- To provide an estimate for a specific product or service; in the Product/Service box, type the description of the item. As you start to type, a list of your products and services appear and you simply click the relevant item.
Alternatively, you can create a new product and service record. To do this, click the arrow then click Add item. Enter the relevant information, then click Save.
- The details of the product or service appears on the next available item line. If necessary, make changes to the item’s information. For example, edit the quantity or price.
- To add more products or services to the invoice, repeat steps 3 and 4.
- If you don’t want to add a product or service to the estimate, enter the following information:
|Description *||Enter a description for the estimate. You can enter up to 2000 characters.|
|Qty/Hrs *||Enter the quantity of items, or hours.|
|Price/Rate *||Enter the sales price, trade or wholesale price.|
|Discount *||If applicable, enter the value of the discount given to the customer.|
|VAT Rate *||Choose the relevant VAT rate.
Note: If your business is VAT registered and you don’t have the option to choose a VAT rate, check you’ve entered your VAT scheme correctly in Settings > Accounting Dates and VAT.
|VAT Amount *||This value calculates automatically based on the quantity/hours, price/rate, discount and VAT rate entered. However, you can also edit it.|
|Total||This is the total gross value of the entry line.|
* These details are compulsory.
- If the estimate is for the sale of goods or services to a EU customer, click the double chevrons .
In the EU Good/Services list, choose whether this item is goods and related services or a stand-alone service.
If the customer is VAT registered, choose which EU Sales Description you want to appear on the invoice.
- To add more transactions, on the next line, repeat steps 6 and 7.
- If required, enter any Notes and Terms and Conditions in the boxes provided.
- If you want to attach a file such as a sales brochure, image or supporting documentation, select Attachment and then Upload files and then browse to the file.
- To include any postage charges in the estimate, under Carriage, choose the relevant VAT rate then enter the net amount.
- To view a breakdown of the VAT calculated, click View VAT Analysis. Then to return to the estimate, click the X icon at the top right-hand side of the window.
- If the estimate is for a product and you’ve entered a cost price in the product record, to view the profit calculated on the estimate, click Profit. If the item doesn’t have a cost price or the cost price is zero, it’s not included in the profit calculation.
- Do one of the following:
|To save the draft estimate||Select the Save as draft check box, then click Save. You should use this option if you’re not ready to send the estimate to your customer yet.
When you’re ready to send it, open the draft estimate and make any necessary changes to it, then clear the Save as draft check box and click Save.
|To save the estimate only||Click Save.|
|To save and email the estimate||Click Save & Email. The Email Estimate window opens automatically. If the customer has an email address in their record, it appears in the To box. You can enter additional email addresses separated by a semicolon.
To receive a copy of the estimate to your registered email address, select the Send me a copy check box. The default email message appears in the body of the email. You can change this if required.
To print a personal copy of the estimate, select the Also print a copy of this estimate check box.
|To save and print the estimate||Click Save & Print. The estimate opens in a new window or tab and you can choose to save or print the estimate from your browser file menu.|
|To save the current estimate and create a new one||Click Save & New, then repeat steps 2 to 13 to create the new estimate.|
You’ve successfully created the estimate. If you chose to email or print the estimate, Yes appears in the Sent column and the estimate status is marked as Pending until your customer either accepts or declines it. Once they’ve done this, you can convert the estimate to an invoice or mark it as declined.
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