Quotation vs Invoice vs Proforma Invoice
These three documents look similar but serve different purposes.
| Quotation | Proforma invoice | Tax invoice | |
|---|---|---|---|
| Purpose | Offer a price | Request advance payment or approvals | Record an actual sale |
| Legally a bill? | No | No | Yes |
| Used for GST? | No | No | Yes (needed for tax credit) |
| When | Before the order | After the order, before delivery | At supply of goods or services |
Simple rule
Send a quotation when the customer asks the price. Send a proforma invoice when they accept and you need payment first. Issue a tax invoice when you supply the goods or services.
Create them here: quotation, proforma invoice, tax invoice. For GST rules read GST invoice fields.