Invoice vs Quotation: What's the Difference?
A quotation is shared before the customer approves a sale or project. An invoice is shared when you are asking for payment. In simple terms, a quotation helps the customer decide; an invoice helps the customer pay and helps you record the sale.
Point | Quotation | Invoice
Timing | Before order confirmation | After sale, delivery or billing milestone
Purpose | Estimate price, scope and terms | Request payment and record billing
Amount | May change before approval | Should match the final payable amount
Customer action | Approve, negotiate or reject | Pay, query or record
Follow-up | Sales follow-up | Payment follow-up
When to send a quotation
Send a quotation when the customer has not yet committed. This is common for service businesses, repairs, custom orders, agency retainers, contractors, printing jobs, wholesale orders and freelance projects. A good quotation gives enough detail for the customer to say yes without confusion.
Prepare a quotation before the sale: Use LinkMitra's Quotation Maker to add items, scope, GST, validity, terms and download a PDF your customer can review.
When to send an invoice
Send an invoice when goods or services have been supplied, or when an agreed billing milestone has arrived. If the customer approved a quotation, the invoice should usually reuse the same item names, quantities and rates unless there was a clear change.
Use quotation numbers and invoice numbers separately.
Mention quotation reference on the invoice when useful.
Recheck GST, discount and final quantity before converting.
Do not send an invoice if the customer only asked for an estimate.
Turn approved work into an invoice: Use LinkMitra's Invoice Generator when the customer is ready to be billed and needs a clean PDF with payment details.
Example workflow from enquiry to payment
A customer asks a printing shop for 500 visiting cards. The shop first sends a quotation showing paper type, quantity, design charges, GST if applicable, expected delivery and validity. If the customer approves it, the shop starts work. After the cards are delivered or ready for collection, the shop sends an invoice for the final approved amount. When payment is received, the business may also create a receipt for proof of payment.
Information that should match
Customer name and contact details
Approved item or service description
Final quantity and rate
GST treatment where applicable
Advance already received, if any
Balance payable and payment terms
Common confusion
Many businesses call every document a bill, but customers may treat a quotation and invoice differently. If you send a document titled invoice before the customer approves the work, they may think you are asking for payment immediately. If you send only a quotation after completing the work, your payment follow-up becomes weaker because there is no clear invoice number or due date.
How LinkMitra fits into the workflow
Use the Quotation Maker when the customer is still deciding. Once the quotation is approved, use the Invoice Generator to create the billing document and add payment details. If the invoice remains unpaid, record the payment status in your account and use a reminder message that references the invoice number. This creates a practical chain from enquiry to approval to payment.
This separation also helps when reviewing business performance. Quotations show potential work. Invoices show billed work. Payments show collected money. Mixing these documents makes sales and cashflow harder to understand.
Can a quotation become an invoice?
Yes. Once the customer approves it, you can use the same details to create an invoice and update the final quantity, tax or payment terms.
Is a quotation legally the same as an invoice?
No. They serve different business purposes. For legal or tax treatment, verify the current rules that apply to your transaction.