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Invoice vs. Receipt vs. Estimate vs. Quote: What's the Difference?

Understand when to use each business document — and how they fit together in a typical sale.

By Billora Editorial Team · Published · Updated

The document lifecycle of a sale

Most sales move through a predictable series of documents: an estimate or quote to agree the price, sometimes a purchase order from the buyer, an invoice to request payment, and a receipt to confirm payment was received. Credit notes adjust invoices after the fact.

Side-by-side comparison

DocumentPurposeIssued byWhen
EstimateApproximate costSellerBefore work
QuoteFixed price offerSellerBefore work
Purchase orderOrder goods/servicesBuyerBefore delivery
InvoiceRequest paymentSellerAfter delivery
ReceiptConfirm paymentSellerAfter payment
Credit noteReduce amount owedSellerAfter invoicing

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