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
On smaller screens, scroll the table sideways to see every column.
| Point of difference | Quotation | Invoice |
|---|---|---|
| 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.