Quote, proforma, invoice, receipt, credit note: which to use
Which document belongs to which stage of a sale: when each is issued, who issues it, what it shows and its tax effect, with one order traced end to end.
The order the documents come in
Most sales pass through the same stages: an offer, sometimes a request for payment in advance, the payment request itself, confirmation that the money arrived and, now and then, a correction. Each stage has its own document with its own number. A later document refers back to an earlier one instead of overwriting it.
Quotation: before the customer decides
A quotation, or quote, sets out what you offer and at what price. An estimate is its looser cousin, an approximate price rather than a fixed one.
- When: before the work or sale, so the customer can accept or compare offers.
- Issued by: the seller, on request or as a proposal.
- Shows: scope, quantities, prices, exclusions and a validity date.
- Tax effect: none, because it is an offer, not a demand for payment.
Proforma invoice: paperwork before supply
A proforma invoice looks like an invoice but is issued before the supply, to state the terms in advance.
- When: for a prepayment, an import licence or a letter of credit.
- Issued by: the seller, usually once the order is agreed.
- Shows: the expected invoice contents, clearly marked as a proforma.
- Tax effect: generally none, since it is not a tax invoice for either side.
Invoice: the request for payment
The invoice is the document tax rules are built around, and the one most countries prescribe in detail.
- When: at the agreed billing point, such as delivery, a milestone or completion.
- Issued by: the seller, or the buyer under an agreed self-billing arrangement.
- Shows: number, date, both parties, what was supplied, amounts, tax and due date.
- Tax effect: the document on which tax is charged and, by the buyer, deducted.
Receipt: proof that the money arrived
A receipt closes the loop on a payment and ties it to the invoice or order it belongs to.
- When: after a payment is received, one receipt for each payment.
- Issued by: whoever received the money.
- Shows: amount, date, method, payer and the invoice it settles.
- Tax effect: usually none, unless it also serves as a simplified tax invoice.
Credit note: reducing an issued invoice
A credit note lowers or cancels an invoice that has already gone out, instead of editing it.
- When: after an invoice, for returns, later discounts, cancellations or errors.
- Issued by: the seller who issued the original invoice.
- Shows: its own number, the original invoice, the reason and the amounts.
- Tax effect: reduces the tax on the original invoice, as local rules set out.
Example: one order, five documents
A customer accepts quotation Q-2026-0031 for 40 display stands at USD 25 plus USD 80 packing: (40 x 25) + 80 = USD 1,080 before tax. They prepay half against a proforma invoice, and receipt RC-2026-0015 confirms USD 540. At shipment, invoice INV-2026-0042 bills USD 1,080, shows the USD 540 already paid and asks for the remaining USD 540.
Five stands arrive damaged. Credit note CN-2026-0007 names the invoice and credits 5 x 25 = USD 125, so the customer pays 540 - 125 = USD 415, and a second receipt confirms it. No document was edited after it was sent.
Moving between them in QuoteBill
In the editor a quotation can become an invoice ("Convert to invoice") or a proforma invoice; a proforma can become an invoice; and an invoice can have a receipt or a credit note made from it. Each new document is a draft with the same customer and lines that names its source, and the original stays unchanged. What each must contain depends on your country: the guides on credit notes, receipts, proformas and estimates cover it market by market.
140 Free Invoice, Quote & Receipt Templates
Free quotation generator
Download the quotation as Excel or Word with the formulas working, or edit it online and turn an accepted quote into an invoice. Free with a QuoteBill account.
Proforma invoice template
Free proforma invoice template: goods, prices, delivery terms and a valid-until date for prepayment or an import licence. Printed as "not a tax invoice".
Free invoice generator
Download the invoice as Excel or Word with the formulas working, or edit it online with your logo and tax settings and save a PDF. Free with a QuoteBill account.
Receipt template
Free receipt template for a payment you received: date, payment method, the invoice it settles and the amount. Download Excel or Word, or make a PDF online.
Credit note template
Free credit note (credit memo) template: reduce or cancel an invoice you already sent, quoting its number and the reason. Download Excel or Word, or save a PDF.
Use QuoteBill in ChatGPT, Claude and Gemini
Connect QuoteBill to ChatGPT, Claude or Gemini in about three minutes, then ask for quotations and invoices in plain words. Setup steps, example requests and privacy.
Quote to invoice: convert an accepted quote
Turn an accepted quote into a separate invoice draft in QuoteBill. Keep the original quotation, review dates and amounts, save, and prepare a PDF.
Quotation vs invoice: differences and timing
Compare a quotation and an invoice by purpose, dates, amounts, and next steps. Follow a practical project example and the matching QuoteBill workflow.
How to write a quotation: fields and checklist
Write a clear quotation with customer details, scope, quantities, prices, dates, and terms. Use a worked example and check the QuoteBill PDF before sharing.
Invoice payment terms: Net 15, Net 30, due dates
Write clear invoice payment terms with Net 15 and Net 30 examples, an explicit due date, deposit checks, and a practical follow-up checklist.
Freelance invoice checklist: hours and fees
Prepare a freelance invoice with a worked hourly-plus-fixed-fee example, scope and expense checks, billing details, and a PDF checklist before sending.
International invoice currency: rates and fees
Clarify invoice currency, settlement currency, exchange-rate examples, and bank fees. Review cross-border tax and QuoteBill country-setting limits.
Invoice numbering: sequences and corrections
Plan a traceable invoice numbering system with year and sequence examples, checks across devices, correction records, and QuoteBill numbering limits.
Proforma vs invoice: payment and export use
Compare a proforma, payment invoice, and commercial export invoice with a worked goods-order example and a checklist for choosing the right document.
German invoice requirements: the mandatory details
What a German invoice must contain under ยง 14 UStG, what a small-amount invoice up to EUR 250 may leave out, and how the small-business and reverse-charge notes work.
Japan qualified invoice: the required entries
The six entries a Japanese qualified invoice must carry, how the registration number is written, how amounts are split by tax rate and rounded, and when a simplified invoice is allowed.
Korean tax invoice: required entries and the electronic form
The four mandatory entries on a Korean tax invoice, the optional ones, when an electronic tax invoice must be issued and transmitted, and how it differs from an exempt-supply invoice.
Quote, proforma, invoice, receipt, credit note: which to use
Which document belongs to which stage of a sale: when each is issued, who issues it, what it shows and its tax effect, with one order traced end to end.
Credit note vs invoice (and credit memo): how to issue one
When to issue a credit note instead of editing an invoice, what it must show, a worked return example, and how it differs from a credit memo and a debit note.
What a receipt must show (and receipt vs invoice)
What to put on a payment receipt, how it differs from an invoice, how to handle deposits and part payments, and a worked example: two receipts, one invoice.
Estimate vs quote: what binds you, with a remodeling example
Estimate or quote: the practical difference, splitting labor, materials and equipment, clauses for hidden damage and changes, and a worked remodeling example.