Invoicing Basics
Quotation vs Invoice: What's the Difference?
What is the difference between a quotation and an invoice? A quotation (or quote) tells a customer what you would charge for a job before it starts. An invoice asks for payment after the work is done or the goods are delivered. The quote is an offer; the invoice is a bill.
Quotation vs Invoice at a Glance
| Quotation | Invoice | |
|---|---|---|
| Purpose | Offers a price for future work | Requests payment for completed work |
| Timing | Before the job | After the job or delivery |
| Binding? | Usually valid for a set period | A formal request for payment |
| Key details | Scope, price, validity date | Invoice number, due date, payment details |
What a Quotation Should Include
- Your details and the customer's details
- A quote number and the date
- A clear scope: what is and is not included
- Prices, taxes, and the total
- How long the quote is valid
- Payment terms and any deposit required
How They Work Together
- You send a quotation with scope and price.
- The customer accepts it, in writing if possible.
- You do the work, or take a deposit first.
- You send an invoice that matches the accepted quote.
- The customer pays and you can issue a receipt.
Keep the invoice consistent with the quote. If the scope changed, explain the difference on the invoice. For the final bill, see what should be included on an invoice. A related document is the proforma invoice.
Frequently Asked Questions
Is a quotation legally binding?
It depends on the wording and local law. A quote with a clear price and validity period usually becomes binding once the customer accepts it. Check local rules if you are unsure.
Can I turn a quotation into an invoice?
Yes. After the work is complete, copy the accepted items and prices into an invoice with a new invoice number and a due date.
Create Your Invoice Online
Our free invoice generator lets you add your items and download a PDF. New to invoicing? Start with how to create a professional invoice.