Quotations · 8 Oct 2026 · 1 min read
Proforma Invoice vs Quotation: What is the Difference?
The two documents look similar and are often confused. They do different jobs in a sale.
Quotation
A quotation is an offer. It states what you will supply, at what price and on what terms, usually valid for a set period. The buyer can accept, negotiate or ignore it.
Proforma invoice
A proforma invoice is a preliminary bill sent before goods are delivered or before payment. It lists the items, prices and totals the buyer will be charged. It is not a tax invoice and is not used to claim input tax credit, which is why a proper invoice follows later.
When to use which
- Quotation: when the buyer is comparing options and asks for a price
- Proforma invoice: after the buyer agrees, when they need to arrange payment, an internal purchase approval or documents for shipping
Common mistakes
- Sending a proforma as a final invoice
- Leaving the validity date off a quotation
- Retyping details instead of converting the accepted quote
Keep them connected
The cleanest approach is to build the proforma invoice from the accepted quotation, so prices and terms cannot drift between documents. Tax rules differ by case, so check your accountant for the invoicing requirements that apply to you.