In production I can't use create pdf button as it shows 'there must be an active template to create pdf'. I checked quote templates but there is no template available when I try to create new template it ask for existing one (there is no existing template). Can anybody tell what I am missing here.
You need to create an Output Template. The the most recent guide to Output Builder that I have found is 'FinancialForce-Output-Builder-User-Guide-V13.0-SP-2', however I cannot find the link for it anymore. It should help since it has examples, so I would recommend getting in touch with FF support and ask them to send it to you.