Converting a Quotation to a Contract

For projects or engagements that require formal agreements before billing begins, you can convert a confirmed quotation into a sales contract. The contract adds legal terms, conditions, and digital signature capabilities on top of the quoted pricing.

How to Convert

1. Navigate to Sales > Quotations.
2. Open the confirmed quotation you want to convert.
3. Click Convert to Contract.
4. Shaari creates a new sales contract pre-filled with the quotation's data.
5. Add contract-specific details:
   • Contract terms and conditions -- legal clauses, delivery timelines, warranties, payment schedules.
   • Start date and end date -- the period the contract covers.
   • Additional notes -- any supplementary information for the contract.
6. Save the contract.

The new contract is created in Draft status.

note

Only quotations in Confirmed status can be converted to contracts. Draft or cancelled quotations cannot be converted.

Adding Contract Terms and Conditions

After converting, you will typically want to add terms that were not part of the original quotation:

• Payment terms -- when and how payments are due (e.g., 50% upfront, 50% on delivery).
• Delivery schedule -- milestones and expected delivery dates.
• Warranty and support -- post-sale obligations.
• Liability clauses -- limitations of liability and dispute resolution.
• Termination conditions -- how either party can end the contract early.

These terms appear in the contract PDF alongside the line items carried over from the quotation.

Digital Signature Requirements

Before a contract can be considered binding, it needs signatures. Shaari supports three types of digital signatures on contracts:

1. Client signature -- the customer signs electronically to indicate acceptance.
2. Seller signature -- your representative signs to confirm the company's commitment.
3. Company stamp -- your organization's official stamp is applied (uploaded in Settings).

When you move a contract to Pending Signature status, the signature collection process begins. See Digital Signatures for the full details on how signatures work.

info

All three signature types must be collected before a contract is considered fully signed. The order of signatures is flexible -- the client can sign first, or the seller can sign first.

Contract Lifecycle After Conversion

Once created from a quotation, the contract follows this workflow:

1. Draft -- the contract is being prepared. All fields are editable. Add terms, adjust line items, and refine the document.

2. Pending Signature -- the contract is finalized and sent for signatures. Core content is locked to ensure all parties are signing the same document.

3. Signed -- all required signatures are collected. The contract is now a binding agreement. At this point, you can:

   • Generate an invoice from the signed contract.
   • Keep it as a reference document.

4. Cancelled -- the contract is voided. This can happen at any stage before signing is complete.

What Carries Over from the Quotation

Field	Behavior
Customer	Copied directly.
Line items	All items, quantities, descriptions, and prices are copied.
Discounts	Per-line discounts carry over.
Tax rates	Tax settings per line item are preserved.
Notes	Quotation notes are copied to the contract notes.

The original quotation retains a link to the generated contract, and the contract shows which quotation it originated from.

tip

When converting a quotation to a contract, take the opportunity to review the line items one more time. Contracts are harder to amend after signatures are collected, so make sure the scope and pricing are exactly right before moving to the signature stage.