Proforma invoice vs invoice vs quotation: what's the difference?
When to send a quotation, an estimate, a proforma invoice, an invoice or a receipt, explained simply with examples.
These documents look alike but do different jobs. Sending the right one avoids confusion with clients and keeps your accounts correct.
| Document | When you send it | Is payment due? |
|---|---|---|
| Quotation | Before the sale, to offer a fixed price for specific work or goods | No |
| Estimate | Before the work, when the final cost may change | No |
| Proforma invoice | Before delivery, so the buyer can arrange payment, approval or import paperwork | Not yet (often paid upfront) |
| Invoice | After the goods or service are delivered | Yes |
| Receipt | After the client pays, to confirm payment | Already paid |
| Credit note | To reduce or cancel an amount already invoiced | Reduces what is owed |
| Delivery note | With the goods, listing what was delivered | No |
| Purchase order | From the buyer, to order goods or services | No |
Quotation vs estimate
A quotation is a fixed price: if the client accepts, that's what they pay. An estimate is your best guess and can change once the work is done.
Proforma invoice vs invoice
A proforma invoice is a preview of the final invoice. It's used to request upfront payment, open a letter of credit or clear goods, but it isn't a demand for payment and doesn't go in your sales records. The invoice is the formal request for payment, issued once you deliver.
You can create all eight documents with our business documents tool.
