Invoice vs receipt vs quotation: what is the difference?
Business owners often mix these up. Each one has a different job, and sending the right one at the right time keeps you organised and looking professional.
The quick answer
- Quotation: "This is what it will cost." Sent before the sale.
- Invoice: "Please pay this amount." Sent when payment is due.
- Receipt: "We confirm you paid." Sent after payment.
The usual order is quotation, then invoice, then receipt.
Quotation
A price offer. It lists what you will provide and the total cost, usually with a valid-until date. It is not a request for payment. Learn more in our quotation template guide.
Invoice
A request for payment. It lists what the customer bought, the amount due, the due date and how to pay. See how to write an invoice in Nigeria.
Receipt
Proof that payment was received. It shows the amount, the date and what the payment was for. See our receipt template.
Other documents you may meet
- Proforma invoice: a preliminary invoice sent before delivery, often used so the customer can arrange payment. See proforma invoices.
- Delivery note: lists what was delivered, signed by the person who received it. See delivery note vs invoice.
- Credit note: reduces what a customer owes, such as for a return. See credit notes.
- Purchase order: a document a buyer sends to order from you. See purchase orders.
A simple example
A caterer is asked to cook for an event. She sends a quotation for ₦300,000. The client accepts and pays a deposit, so she sends an invoice showing a ₦150,000 balance and issues a receipt for the deposit. After the event, the client pays the balance, and she sends a final receipt marked paid in full.
Keeping it all in one place
Aurum makes all of these documents in one app, with your logo, signature and bank details already filled in, so you do not need separate templates.
Questions people ask
Can I send an invoice without a quotation?
Yes. A quotation is optional, and mostly useful when the price needs the customer's agreement before work starts.
Is a receipt required by law?
Customers and companies commonly expect receipts, and keeping records is good practice. Ask an accountant what applies to your business.
What comes first, invoice or receipt?
The invoice comes first, asking for payment. The receipt comes after, confirming the money arrived.
Want this done for you in under a minute?
Aurum Invoice Studio makes invoices, receipts and quotations with your logo, signature and bank details, then delivers them as a private link, sealed with your brand, that gives your client an experience. Pay once, no monthly fees.
See plans and pricing Try the free demo