Understand when to send a quotation and when to send an invoice. Learn how to convert accepted quotes into invoices.
Quotations and invoices are two of the most important documents in a freelance or small business workflow. While they contain similar information (pricing, line items, client details), they serve different purposes at different stages of a business transaction.
A quotation (also called a quote or estimate) is a document you send to a potential client before any work begins. It outlines what you will deliver, how much it will cost, and under what terms. The client reviews the quotation and decides whether to accept it.
An invoice is a document you send after the work is completed (or at a agreed milestone). It requests payment for the products or services already delivered. Unlike a quotation, an invoice represents money that is owed, not a proposed price.
| Aspect | Quotation | Invoice |
|---|---|---|
| Timing | Before work starts | After work is done |
| Purpose | Propose a price | Request payment |
| Status | Pending / Accepted / Rejected | Pending / Paid / Overdue |
| Validity | Often has an expiration date | Has a payment due date |
With Terraform Documents, you can convert an accepted quotation into an invoice with a single click. All line items, pricing, and customer details carry over automatically. This seamless workflow means you never have to re-enter data or copy information between documents.
Create a free quotation, wait for your client to accept, and convert it to an invoice instantly.