Quote vs Invoice vs Receipt vs Proforma
Why the difference matters
Businesses use several documents around a sale, and mixing them up causes late payments, rejected expenses and tax problems. Each document has a different job, a different moment in the sales process and different legal weight. Knowing which to send, and when, makes you look professional and keeps your records accurate.
Quote or estimate
A quote (also called an estimate or proposal) is sent before work begins. It states what you will deliver, the price, how long the offer is valid and the terms. A quote is an offer: if the customer accepts, it can form the basis of a contract. An estimate is usually less firm than a quote, so label which one you are sending and say whether the price can change. You can create one with the quote generator.
Proforma invoice
A proforma invoice is a preliminary invoice sent before goods or services are delivered. It is common in export, where customs and banks ask for a document that shows the value and nature of the goods, and when a seller wants an advance payment before production. It is not a demand for payment under a final sale and normally cannot be used to reclaim tax. The proforma invoice generator includes delivery terms and tax ID fields.
Invoice
An invoice is the formal request for payment after goods are delivered or work is done. It lists what was supplied, the amounts, tax, the due date and how to pay. Because tax authorities rely on invoices, it must carry a unique number and your business details. This is the document that creates a debt: the customer owes the amount shown by the due date.
Receipt
A receipt confirms that payment has been received. It shows the amount, date, payment method and usually the invoice it settles. Customers need receipts for their own accounting, and you need copies to prove the sale was paid. Send a receipt only once the money has actually arrived. Use the receipt generator for a clean, numbered record.
Credit note
A credit note reduces or cancels an invoice you have already issued, for example after a return or an error. Instead of editing the original, you issue a separate, numbered credit note that references it. This keeps a clear audit trail. See the credit note generator.
Purchase order
A purchase order is created by the buyer, not the seller. It orders goods or services at an agreed price and delivery date. Many large organisations will only pay an invoice that quotes a valid PO number, so ask for it when you accept the order.
A typical sequence
A common flow is quote, then purchase order or acceptance, then proforma (if an advance is needed), then delivery, then invoice, then payment, then receipt. If something is returned or corrected, a credit note adjusts the invoice. Not every sale needs every document, but keeping the order consistent helps customers and accountants follow the trail.
Quick comparison
A quote offers a price; a proforma previews a sale; an invoice requests payment; a receipt proves payment; a credit note reduces an invoice; a purchase order places an order. Number each type in its own sequence (for example QUO-0001, INV-0001, REC-0001) and keep copies. InvoiceSeb lets you switch between all of these in one tool.
Which document should you send?
Ask three questions. Has the customer already agreed to buy? If not, send a quote. Has the work or delivery happened? If yes, send an invoice; if it has not and you need money or customs paperwork first, send a proforma. Has the customer paid? Then send a receipt. If anything needs correcting after an invoice is issued, send a credit note. Following this simple sequence prevents the most common mistakes, such as invoicing before a quote is accepted or sending a receipt for money that has not arrived. Many small businesses keep a short checklist beside their templates so the right document goes out every time.
Numbering and record keeping
Give each document type its own sequence and never reuse a number. Keep PDF copies of everything, ideally for the number of years your tax authority requires, which is often between five and ten. Link documents to each other by quoting the earlier reference: the invoice references the quote or purchase order, the receipt references the invoice and the credit note references the invoice it adjusts. This chain is what an accountant or auditor will look for, and it makes it easy to answer a customer who asks why an amount changed. Saved invoices and their payment status are visible together in your Reports.
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General information only, not legal, tax or financial advice.