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Confused by "quote vs estimate" or "proforma vs commercial invoice"? Each entry below gives a one-line definition, key points, and when to use it.
An invoice is a commercial document a seller issues to a buyer that itemizes goods or services provided and requests payment for them.
A quotation is a formal document in which a seller offers to provide specific goods or services to a buyer at a stated price, before work begins.
A proforma invoice is a preliminary, non-binding bill of sale sent to a buyer before a transaction is finalized, typically to confirm details or facilitate customs and advance payment.
An invoice is a document REQUESTING payment for goods or services delivered, while a receipt is a document CONFIRMING that payment has been received.
An ESTIMATE is an approximate cost guess that can change. A QUOTE is a firm, binding price offer. An INVOICE is the final demand for payment after work is delivered.