Invoice vs. Quotation: What’s the Difference?
A quotation and an invoice serve different points in a client relationship. A quotation sets out proposed work and pricing before the client commits. An invoice requests payment for work or goods that have been agreed or delivered, according to your arrangement.
What is a quotation?
A quotation describes the work you propose to do and the price or pricing basis. It can help both sides agree on scope before work starts. Include the client, a quote reference and date, the proposed services, quantities or milestones, prices, any applicable tax, and how long the offer is valid if that matters.
A quotation is not automatically a contract or proof that a client accepted the offer. The effect depends on the wording, the parties’ agreement, and local law. Record the client’s approval and the agreed scope before beginning work.
What is an invoice?
An invoice records a charge and asks the client to pay. It should identify the supplier and client, explain the billed work, show the amount and currency, and provide payment details and a due date. Tax information may also be required depending on local rules.
Which document should you send?
Send a quotation when a prospective client needs to review the proposed scope and price before approving the work. Send an invoice when you are billing under the agreed arrangement—for example, after a milestone, on a recurring schedule, or when the project is complete.
For larger jobs, you may use both: provide a quotation, record approval, complete the agreed work, then invoice according to the payment schedule. Keep the final invoice consistent with the accepted scope and document any changes.
Keep the handoff clear
Give each quotation and invoice its own reference number, retain copies, and make any revisions easy to identify. If the client approves a quotation and your process supports it, carry the agreed details into the invoice draft, then review dates, amounts, and payment terms before sending.