What is Quote-to-Order?

Quote-to-order (Q2O) is a business process involving generating a sales quote for a customer and converting it into an order. The process begins with the customer’s request for a quote, which is then created using the specifications of the customer’s desired products or services. This quote is the basis of an agreement between the customer and supplier that outlines the cost, delivery date, product specifications, payment terms, and other factors. Once both parties accept this agreement, it can be turned into an order for fulfillment.

Quote-to-order streamlines the buying process by eliminating any time spent manually creating orders for each transaction. With Q2O, customers can choose from pre-defined product bundles or customize quotes specific to their needs. Then the system will generate an order that will automatically be sent to invoicing and fulfillment. Furthermore, businesses with a quote-to-order process can automate certain parts of their operations, such as billing and shipping, thus freeing up valuable resources.


  • QTO
  • Q2O

Benefits of Implementing Quote-to-Order 

Quote-to-order can help businesses increase efficiency, reduce costs, improve accuracy in pricing and ordering processes, and provide better customer experience throughout the purchase journey. Additionally, this process allows companies to track their inventory in real-time, identify cost savings opportunities, and generate comprehensive sales reports. By automating quote requests and orders through Q2O software solutions, companies can ensure they always have accurate product and pricing information when responding to customer inquiries and generating quotes and orders.

Quote-to-Order Process Steps

The quote-to-order process in B2B sales is crucial in any successful purchase. It allows businesses to accurately quote the price of goods and services and negotiate the most beneficial terms and conditions for both parties. The steps in the quote-to-order process typically involve the following:

1. Developing a product/service catalog: A product catalog involves detailed descriptions of the products or services being sold, including specifications, features, price, and fulfillment timelines.

2. Preparing an accurate quote: Once there is an agreement between buyer and seller on the product details and cost, a formal written quote is prepared, which includes all relevant information such as pricing, payment terms, delivery deadlines, and return policies.

3. Negotiation: The buyer may seek additional discounts or concessions during contract negotiation. This could include flexible payment plans or extended return policies. If agreed upon by both parties, these changes must be included in the formal quote document before it can proceed with approval.

4. Approval: Once both parties accept the quote, it should be approved by all relevant stakeholders within each organization. This approval process may include further negotiations before a final contract is created and the seller can begin order processing.

5. Order processing: Once approved, orders are typically processed through automated systems that track purchase orders (POs), invoices, payments, and shipment details for efficient fulfillment of goods or services bought by the buyer from the seller.

The quote-to-order process is an essential part of any sales transaction since it helps ensure that both parties understand the terms of their contract while protecting each organization’s interests. By following these steps carefully, companies can eliminate errors and maximize profits while strengthening business relationships and ensuring customer satisfaction.

Quote-to-Order Automation

Quote-to-order automation uses technology to create, deliver, and track quotes and orders. It streamlines the sales process by collecting customer information and preferences, generating detailed customer quotes, sharing them with stakeholders for contract approval, and generating orders from signed contracts. 

The technology used to automate the quote-to-order process is becoming increasingly popular for businesses across industries, as it helps to streamline and improve operational workflow. Q2O software automates sales operations tasks, such as customer data entry, quote generation, product tracking, and order management.

Software used to automate the Q2O process includes:


CPQ (configure-price-quote) software is a powerful tool for quoting and ordering to streamline and automate sales operations. It enables businesses to create accurate quotes quickly and convert them into orders within minutes. CPQ software integrates with existing enterprise software, such as CRM, ERP, or finance platforms, to offer an end-to-end solution.

CPQ software increases efficiency by automating manual tasks associated with pricing and quoting, such as preparing proposals, gathering customer data, configuring product options, validating order details, generating legal documents and contracts, and more. By automating these time-consuming tasks, sales teams can ensure their price quotes lead to accurate and fulfillable orders.

Contract Management

CPQ and contract management software are often integrated or located within the same revenue platform to streamline the quote-to-order process and ensure efficient management of sales contracts.

When using contract management software for the quote-to-order process, businesses can enter all relevant information about their products or services into the system. This includes pricing details, ordering terms, delivery methods, payment options, and any additional requirements that must be met before an order is accepted. The software then generates an automated contract or purchase order based on this information. It also stores this data securely to be referenced when needed.

The main benefit of using contract management software in the quote-to-order process is that it simplifies complexity in the contract lifecycle. Users can set up rules within the software so that they are automatically reminded when contracts have expired, or a customer has not responded to a request for payment.


Billing software is integral to Q2O, enabling businesses to effectively and efficiently manage accounts receivable. This software integrates with CPQ and contract management and order fulfillment software to streamline the process, from quoting potential customers to managing invoices and payments once the order has been fulfilled.

When integrated with CPQ, billing software generates professional-looking customer proposals with itemized product and service listings, payment terms, and applicable discounts. Once accepted by the customer, this same system can generate an invoice that reflects the content of the original quote. Furthermore, these invoices can be sent electronically to customers for immediate payment or manually delivered via post.

Billing software also allows business owners to track outstanding invoices so they know when payments are due. Additionally, analytics features can provide up-to-date snapshots of a company’s accounts receivable health. This information could include total outstanding and overdue balances so the company can follow up with customers who have not paid their bills on time.

Finally, many billing platforms integrate with other systems, such as accounting or eCommerce. This allows businesses to combine all relevant data from different sources into one centralized location for better financial visibility and decision-making capabilities.

People Also Ask

Can a quote be converted to a sales order?

Yes, it is possible to convert a quote into a sales order. This process can be done through automated software and tools. When converting quotes to sales orders, businesses benefit from the efficiency of quickly and easily turning customer inquiries into actual transactions.

By eliminating manual paperwork, companies can reduce errors and ensure accurate information is captured in each transaction. In addition, when quoting software is used with integrated billing and accounting systems, it provides an easy way for customers to accept offers and make payments immediately without any extra steps required by either party. As such, converting quotes into sales orders helps create an efficient workflow that enables businesses to manage their invoicing processes better while providing convenience for customers.

What is the difference between quote-to-order and order-to-cash?

Quote-to-order and order-to-cash are two different business processes that play important roles in the operations of many companies. Quote-to-order refers to a sales process that starts with the customer’s request for a quote, followed by an actual placement of an order. In this process, the customer orders a product or service from the company for an agreed-upon price. The order is then fulfilled and delivered to the customer.

On the other hand, order-to-cash is a term used to describe the entire cycle of purchase orders, invoicing, payments, collections, and returns. This process involves all steps from when customers submit their orders to when they receive their goods or services and pay for them. Both processes ensure efficient business operations and create profitable customer relationships.