Last updated: 21 July 2026
Invoices and quotations are both business documents, but they are used at different points in a transaction. Understanding the difference helps you communicate clearly with customers and keep better records.
What is a quotation?
A quotation, quote or estimate is normally sent before the customer confirms the purchase. It describes the proposed products or services, expected price, taxes, discount, terms and how long the offer is valid.
What is an invoice?
An invoice is normally issued after goods are supplied, services are completed, work is confirmed or payment is due. It asks the customer to pay a specific amount and usually includes invoice number, invoice date, line items, totals, tax, payment terms and business details.
When should you use a quotation?
Use a quotation when the customer wants to know the expected cost before confirming the purchase. This is common for service jobs, custom orders, bulk sales, repair work, installation, projects or negotiated pricing.
When should you use an invoice?
Use an invoice when the sale is confirmed and payment should be collected or recorded. The invoice becomes part of your business history and can be used for payment follow-up, reporting and customer communication.
Can a quotation become an invoice?
Yes. A quotation can become an invoice after the customer accepts the offer. This is why a good quotation tool should keep the item details, totals and notes easy to reuse.
Create a free quotation first, or make a free invoice when the sale is already confirmed.