Invoice vs Quotation — Which One Should You Send First?

The Short Answer

A quotation is sent before any work begins — it's an estimated price for goods or services you're offering. An invoice is sent after the work is done (or agreed to proceed) — it's a formal request for payment. Quotation first, invoice later.

Think of it as two steps in the same sales process: the quotation gets the customer to agree on price, and the invoice collects the money once the job is confirmed or completed.

What Is a Quotation?

A quotation (sometimes called a "quote") is a document you send to a potential customer before any work starts. It outlines the goods or services you'll provide and the price you're proposing — so the customer can decide whether to proceed.

A quotation typically includes:

• Your business name and contact details
• Customer's name and contact details
• A unique quotation number
• Date of issue and validity period (e.g. "valid for 14 days")
• Itemised list of goods or services with estimated prices
• Estimated total cost (including any taxes)
• Terms and conditions (e.g. deposit required, delivery timeline)

When a customer asks "how much to renovate my kitchen?" or "what's your rate for a logo design?" — you send a quotation. No work has started yet. You're simply proposing a price for them to approve.

What Is an Invoice?

An invoice is a formal document you send once the work is underway or completed. It's a request for payment, listing exactly what was delivered and the amount owed.

An invoice typically includes:

• Your business name and contact details
• Customer's name and address
• A unique invoice number
• Date of issue and payment due date
• Itemised list of goods or services delivered with final prices
• Total amount due (including any taxes)
• Payment instructions or bank account details

Once the customer approves your quotation and the job is done — you send an invoice. This time it's not an estimate; it's the actual amount they owe, and by when.

Side-by-Side Comparison

Feature	Quotation	Invoice
When is it issued?	Before work starts	After work is done or confirmed
What does it mean?	Proposed price estimate	Request for payment
Is the price final?	No — can still change	Yes — final amount owed
Does it include a due date?	Has a validity period instead	Yes
Is it legally binding?	No — it's a proposal	Yes — creates obligation to pay
Who asks for it?	Customer wants to compare prices before committing	Customer needs it to process payment

When Do You Need a Quotation?

You should send a quotation when:

• A customer asks for your price before agreeing to any work
• The scope of work isn't confirmed yet and may change
• You're competing with other vendors and the customer wants to compare prices
• The job involves custom pricing (e.g. renovation, event planning, bulk orders)
• You want written proof of the price offered, in case of disputes later

When Do You Need an Invoice?

You should issue an invoice when:

• The customer has accepted your quotation and work has started or completed
• You've delivered goods or completed a service and need to collect payment
• Your client is a company — their finance department requires an invoice to process payment
• You offer credit terms (e.g. payment within 30 days)
• You need a formal, legally binding record of the amount owed

Can a Quotation Become an Invoice Directly?

Yes — once a customer approves your quotation, you don't need to start from scratch. Many invoicing tools (including Easykey) let you convert an accepted quotation into an invoice with one tap, carrying over all the items, quantities, and prices automatically.

This saves time and avoids typos — the invoice matches exactly what the customer agreed to in the quotation.

A Real Example

Say you run a small catering business. Here's how the documents flow for a new event booking:

1. A customer asks for catering for 100 guests. You send a quotation for RM3,500, valid for 7 days.
2. The customer confirms the booking and asks you to proceed.
3. After the event is delivered, you convert the quotation into an invoice for RM3,500, due within 7 days.

The quotation got the customer to commit to a price; the invoice collected the payment once the job was done.

How Easykey Handles Both

With Easykey Invoicing, you can create quotations and invoices from the same app — on your phone or laptop. Send a quotation to a customer via WhatsApp, and once they approve, convert it into an invoice in one tap.

No Excel. No retyping item lists. No confusion about which document to send and when.