What is the difference between a quotation and an invoice?

A quotation is a price proposal sent before a sale — it tells the customer what something will cost and how long the price is valid. An invoice is a request for payment sent after the customer agrees. The quotation comes first and commits no one; the invoice comes later and is owed.

Does a quotation ask for payment?

No. A quotation is an offer, not a bill. It has no amount paid and no balance due — only a total and a validity date. Payment only becomes due once you convert the accepted quote into an invoice.

When should I send a quotation instead of an invoice?

Send a quotation when the customer wants to know the price before committing — custom work, bulk orders, installations, or any job you price up front. Send an invoice once the work or order is agreed and you want to be paid.

Can I create both quotations and invoices in YellowPOS?

Yes. YellowPOS has separate Quotations and Invoices sections in the same dashboard. A quotation carries a validity date and a draft-to-accepted status; an invoice carries a due date and a paid/partial/unpaid status. Both produce a clean, professional PDF.

Quotation vs Invoice: What's the Difference and When to Use Each

The two documents look similar — a business name, line items, a total — but they play opposite roles. Mixing them up confuses customers and muddles your records. Here's the plain-English difference and exactly when to send each.

A quotation and an invoice sit at opposite ends of the same sale. One comes before the customer says yes; the other comes after. Get the order right and the whole transaction feels smooth and professional. Get it wrong — sending a bill before anything is agreed, or a quote when you actually want paying — and you look disorganised.

The short answer

A quotation is a price proposal. It tells the customer what something will cost and how long that price is valid, and it commits no one — nothing is owed. An invoice is a request for payment. It's issued once the customer agrees, and it represents money the customer now owes you. In short: quotation before, invoice after.

What's on each document

Both carry your business name and tax number, the customer's details, an itemised list, tax, discount, and a total. The difference is in the dates and status. A quotation has a Valid Until date and a status like Draft, Sent, Accepted, Declined, or Expired — it tracks whether an offer is still live. An invoice has a Due Date and a status like Unpaid, Partial, or Paid, plus an amount paid and a balance due — it tracks whether you've been paid.

When to send a quotation

Send a quotation whenever the customer wants a price before committing: a custom job, a bulk or wholesale order, an installation, a design project, or any work you cost up front. It lets the customer compare and decide without being on the hook, and the validity date keeps your pricing protected while they think it over.

When to send an invoice

Send an invoice once the sale is agreed and you want to be paid — after a quote is accepted, after a service is delivered, or alongside a wholesale order going out. The invoice is the document the customer pays against, and recording the payment on it keeps your books clear about who still owes you.

How it flows in practice

A typical job runs quote → agree → invoice → pay. You send a quotation, the customer accepts it, you mark it Accepted, then you bill them with an invoice for the same items and total. In YellowPOS both documents live in the same dashboard — Quotations and Invoices each with their own numbering, statuses, and PDF — so you move from proposal to payment without retyping anything or juggling separate tools.

The takeaway

Use a quotation to win the work and an invoice to get paid for it. Keep them as distinct documents — with their own numbers and dates — and both your customers and your end-of-month records will be clearer. Ready to send your first? Start with how to send professional quotations to customers in Lebanon.