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    Categories: FinanceUncategorized

Difference Between Quote and Invoice?

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When to use an invoice vs. a quote?

Most of the time people get confuse the difference between invoice and quote. Do you want to get clear this doubt? Here comes as follow

Differences key

  1. The Quote is a response or answer for RFQ (Request for Quotation). Invoice is a document for both completed and progress payments.
  2. Quotation is a suggested or formal estimated amount or services to a product which we going to buy. Invoice is provided before full payment or partial payment of a product which purchased already.
  3. Quote can be negotiable time to time. Invoice is non-negotiable.
  4. The quotation is issued to customers prior to a plan of buying a product while the invoice is issued prior to the payment.
  5. Quotation may be in verbal communication but invoice must be in written form.

Definition of Quote

A Quote is formal estimation slip given by the seller of the product to the customer. It can be negotiable according to the customer and seller satisfaction. Once the final quote gets concluded with its terms and condition by the customer and the seller then Performa invoice get generated and will be signed by the customer later. Quotation slip consists of details such us

  • Company Name
  • Company Phone Number
  • Quotation Number
  • Date
  • Customer Details such as (ID, Name, Address, Phone Number)
  • Product Description
  • Item code
  • Quote purpose
  • Quote Amount
  • Discount Amount
  • Tax / Vat rate
  • Total
  • Validity details of the quote

Definition of Invoice

An Invoice is a document or slips issued to the product purchaser by the vendor that contains a request for payment. It is the final document and the details cannot be negotiable. Sometimes it provided in two formats before full or before part payment of the amount. Invoice slip consists of details such us

  • Quantity
  • Price
  • Discount
  • Taxes
  • Vat
  • Total Amount Due for The Payment
  • Invoice Number
  • Invoice Date
  • Signature of Seller and Customer.

Comparison Table [Quotation Vs Invoice]

Basic Comparison Quotation Invoice
What is it? The printed or oral document provided by the seller to the customer as a price estimation which is negotiable. The printed document provided by the seller to the purchase before buying a product which is non-negotiable.
Time of Issue While planning to buy a product Before Payment
Details Company Name, Company Phone Number, Quotation Number, Date, Customer(ID, Name, Address, Phone Number), Product Description, Item code, Quote purpose, Quote Amount, Discount Amount, Tax / Vat rate, Total, Quantity and Validity details of the quote. Quantity, Price, Discount, Taxes, Vat, Total Amount Due for The Payment, Invoice Number, Invoice Date, Signature of Seller and Customer.

Similarities:

  •  Both quote and invoice contain product & company details.
  • Both are having valid period or days.

Conclusion:

Both this (quote and invoice) are important to buy a product at low cost. First of all, get a good quotation for a quality product among the product sellers. Choose the best quote product and purchase it. Before paying the amount to that product, you have to get an invoice and after payment, you have to get a receipt for the product.

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