Guide

Invoice vs estimate vs quote

Different documents serve different purposes. Clear labels help clients understand whether a document is a request for payment, a proposed price, a correction, or a purchase request.

Common document types

• Invoice: usually requests payment for goods or services supplied.
• Estimate: gives an approximate price before work is confirmed.
• Quote: gives a proposed price, often valid for a set period.
• Proforma invoice: shows expected charges before the final invoice in some workflows.
• Credit note: records a credit, return, overcharge, or correction against a previous transaction.
• Purchase order: records what a buyer wants to order from a supplier.

Legal clarity

Tax treatment depends on your country and business facts. Label estimates, quotes, and proformas clearly, and confirm whether your local rules require specific wording or registration details.