You're following the correct procedure.  A Customer Quotation (or any other Transaction type) has "Generate PDF" and "Send Email" buttons at the top of the screen.  These buttons become split buttons (drop-down with multiple options) if multiple output document (PDF) templates are available (for that object type). 

As you've already identified, multiple email templates are not available on the Customer Quotation screen.  You select "Send Email", which attaches the PDF to the email, then you choose the email template (as long as it's activated and for that object type).

You then add the recipients.  Bear in mind the F.A.O. field on the Quotation Screen is free text.  It doesn't "look-up" or link to a person record's email address, so it can't be automatically added.

Please feel free to add an idea to the Workbooks Enhancements & Suggestions Forum if you'd like this, or a similar feature, to be considered for future development.  Thank you.

 Thanks. I will make some suggestions. In the meantime when we send an email with the quotation attached and have selected the recipient, can I get the template to automatically pick up the recipient first name? If so what is the string used  - I've tried @person.name@?

Tks

Kevin

Unfortunately not.  The only fields available are those of the templates's object type (in this case a customer quotation), drillable items, and the fields in More columns.  You may want to use the FAO field (mentioned in previous comment) on the email template.

NOTE:  Some of the column options have a small black arrow next to them ►.  These are known as 'breadcrumbs' and enable you to 'drill through' to other object types and use the fields from a different object within your report.

 Kevin

As Support suggests I use -  Dear @fao@ -  within the email template body when I send out invoices and it picks up the free form FAO field from the invoice.  I load up the template first, then fill in the address field using the name of the person displayed in the email body below.