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Commercial forms guide · Updated 10 October 2026

Quotation vs invoice: what's the difference?

A quotation is the price you offer before the work is agreed; an invoice is the request for payment once the work or goods have been delivered. The quotation comes first and the customer decides whether to accept it; the invoice comes last and tells them what to pay, by when and how.

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Quotation vs invoice at a glance

The difference between a quotation and an invoice

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Point of differenceQuotationInvoice
Purpose
Offers a price for described work or goods so the customer can decide
Asks the customer to pay for work or goods that were agreed and delivered
When it is sent
Before the work starts or the order is placed
After delivery, or at the stages the agreement sets out
Who sends it
The seller or supplier, to a prospective customer
The seller or supplier, to the customer who agreed the work
What it usually shows
Items, quantities, prices, tax, total, what is excluded and how long the price stands
Invoice reference, date, items supplied, amounts, tax, total, payment due date and how to pay
Legal effect, in plain terms
An offer. If the customer accepts it, it can become part of the agreement between you
A request for payment of what was agreed. It records the amount due; it does not create the agreement
Plain-language summary only. Whether a particular quotation is binding depends on its wording and how it was accepted; take advice if that matters to you.
Worked example (fictional)

From quotation to invoice: one job, start to finish

Fictional businesses and figures, for illustration only. The tax rate shown is simply the rate entered; it is not advice on what to charge.
1

Quotation Q-0142 is sent

Example Joinery Ltd quotes Sample Café for 2 fitted shelving units at £450.00 each and 1 day of installation at £120.00. Subtotal £1,020.00; tax entered at 20%: £204.00; total £1,224.00. The quotation says the price stands for 30 days.
2

The customer accepts

Sample Café accepts the quotation in writing within the 30 days. The joiner keeps a copy of the accepted quotation with the job.
3

The work is delivered

The shelving is fitted as quoted. Nothing extra is agreed, so the amounts do not change.
4

Invoice INV-0098 is issued

Example Joinery Ltd sends an invoice that refers to quotation Q-0142, lists the same three lines and totals £1,224.00, with a payment due date and bank details. If extra work had been agreed in writing, it would appear as a separate line.
Quotation vs estimate vs invoice

Where an estimate fits

An estimate is a best guess at the cost; a quotation is a stated price for defined work; an invoice is the bill.
Both of Soteriaa’s generators calculate line amounts, tax and totals from the quantities, prices and tax rate you enter. You choose the reference numbers yourself; they are not issued automatically. Start with the free quotation generator and, when the work is done, the free invoice generator. For orders you place with suppliers, read purchase order vs invoice.
  • Use a quotation when you can describe the work precisely enough to price it.
  • Say what is excluded and how long the price stands, so the customer knows what they are accepting.
  • Refer to the accepted quotation number on the invoice so both sides can match them.
  • If the work changed, agree the change before invoicing it and show it as its own line.

What Soteriaa does and does not do

Soteriaa creates documents from the details and figures you enter. It is not accounting software, it does not process payments or approve purchases, and a “paid” status is only ever recorded by you. This guide is general information, not tax, accounting or legal advice. Commercial tracking (customers and suppliers, issue and due dates, and a payment status you record yourself) is coming but not on sale yet; the generators are free now. See the commercial forms and resources hub.
FAQ

Common questions

Is a quotation the same as an invoice?
No. A quotation offers a price before the work is agreed; an invoice asks for payment after the work or goods have been delivered.
Can I turn a quotation into an invoice?
Many businesses invoice the same lines they quoted once the work is done. In Soteriaa you create the invoice separately with the invoice generator and enter the lines yourself; it does not convert a quotation automatically.
Does a customer have to pay a quotation?
A quotation is not a bill. Payment is requested by the invoice that follows the agreed work.

Write your quotation now

Free, with calculated totals. Create the invoice from the invoice generator once the work is delivered.