Quotation vs Invoice: What's the Difference and When to Use Each

Quotation vs Invoice: Quick Summary

A quotation is sent before work begins — it's an estimate of costs. An invoice is sent after work is completed — it's a request for payment. Think of a quotation as "this is what it will cost" and an invoice as "please pay this amount."

When to Send a Quotation

• When a potential client asks "how much will this cost?"
• Before starting any project to set price expectations
• When bidding on a project against competitors
• When the scope of work needs to be agreed upon before starting

When to Send an Invoice

• After delivering the agreed work or product
• At agreed milestones (e.g., 50% upfront, 50% on delivery)
• On a recurring schedule for ongoing services

Key Differences

Quotations are negotiable and non-binding. Invoices are final and represent a legal obligation to pay. Quotations typically have an expiry date (e.g., "valid for 30 days"). Invoices have a due date (e.g., "Net 30").

The Workflow: Quote → Contract → Invoice

The professional workflow is: send a quotation, get approval, sign a contract, do the work, send an invoice. With Clorefy, you can generate all three documents from the same conversation — and even link them together so client details carry over automatically.