A micro-entrepreneur, even if he or she has a price list, may need to provide a quotation in response to a specific request or need from customers or future customers. But is this a mandatory document? Why is it preferable to draw up an estimate for each service? What information should not be omitted? What is it worth once signed? Find out all about quotations for micro-businesses.
What is a quotation?
A quotation is a document containing the various stages making up the service(s) proposed by the professional. The detailed description is associated with a unit price for each line. The sum of all these lines gives the total amount to be invoiced.
A quotation can then be reconsidered as a contract proposal. Once signed, it becomes a contractual document binding on both parties. The micro-entrepreneur must then honor the services mentioned on the estimate, and the customer who has signed must pay the price agreed upon. It's a document to which great importance must be attached, since it determines the professional's commitments.
Is it compulsory to draw up an estimate for a service?
Although it's not compulsory in every situation, it's strongly recommended that you draw up an estimate for a service. In addition to providing credibility in the eyes of the customer, a quotation also offers certain guarantees to the service provider. It clearly defines and secures the working framework. On the customer's side, it enables them to compare prices and choose a service knowing all the associated details.
Under article L. 112-3 of the French Consumer Code, the provision of a detailed estimate is mandatory "when the price cannot be reasonably calculated in advance due to the nature of the good or service".
For certain professions, drawing up an estimate is compulsory by its very nature, or above a certain amount:
- Personal services over €100
- Repairs or breakdown services costing more than €150
- Structural and finishing work, electrical connections or installation of electronic equipment
- Services costing more than €100 per month
- Funeral services
- Moving services
A detailed quotation can also be provided on simple request by the customer, except in the cases and amounts mentioned.
Quotations must always be drawn up in duplicate: one for the customer and one for the self-employed contractor to keep. Once signed, quotations are legally requalified as contracts and must therefore be kept for at least 5 years. They can be used as evidence in the event of unpaid invoices and in debt recovery procedures.
How do you draw up a quote without omitting the obligatory information?
There are no restrictions on the form of the quotation. You can create your own template using an Excel spreadsheet, or use specialized software solutions. However, it's quicker and simpler to use the same template or software for both quotations and invoices.
To be valid, a quotation must include certain mandatory information:
- The title of the document - choose from "quotation", "price proposal" or "commercial offer".
- Quotation date and validity period
- Contact details and legal information for the micro-business, including SIRET number
- The customer's contact details and place of work (unless expressly refused by the customer)
- Detailed description of service (unit price, labor, travel expenses, start date and duration, etc.)
- Terms of payment and down-payment, if any
- After-sales service or warranty conditions
- The total amount of the service, excluding tax and including all taxes, with the mention "TVA non applicable, article 293 B CGI" (VAT not applicable, article 293 B CGI) for auto-entrepreneurs not subject to value-added tax, or with the VAT rate where applicable.
- A space for handwritten customer details (date, approval and signature)
Can a quotation be modified or cancelled?
The content of the service must be as detailed as possible to make it easier for the customer to understand the estimate, but not only that. The aim is also to ensure that the estimate is as accurate as possible for the micro-entrepreneur, in terms of working time and invoicing methods (hourly or flat-rate, for example). A quotation cannot be modified by the auto-entrepreneur once the customer has signed.
In general, the customer cannot cancel a quotation, except by mutual agreement between the two parties, or in one of the following cases:
- The quotation is the result of door-to-door canvassing or distance selling, which includes a 7-day cooling-off period.
- A delay in delivery or performance of more than 7 days, not caused by force majeure, may result in cancellation of the quotation.