Differences between Quotation and Invoice in the Manufacturing Industry

Rancakemedia.com – Do you already know the difference Quotations and Invoices? see the information in the article that we will provide below.

Others use quotations or quote letters and some use invoices or sales invoices in purchasing and transaction invoices so people often get confused about the difference between a quote and an account.

Difference between Quotation and Invoice According to Function

Let's first look at the invoice and Quotation functions. Both are used in B2B business. Differences in function may be noticed. Quotation is a letter of offer given to the client after the request.

Offer letters are often used in B2B transactions and will be used to buy goods or use services after your client gets in touch. You can then submit a letter of offer with the price of your goods or services.

Quotation includes the code and description of the goods or services provided. Information should be recorded in units and quantities. In addition, promotions and discounts are combined and deals include offer prices.

In addition to information about the goods or services provided, the Quotation also includes questions about company identification and other payments such as payment processing and payment account number information.

Invoice is issued at the end of the transaction, unlike the Quotation which is issued at the beginning of the transaction. When the goods have been received or the service has been completed, an invoice will be sent. An invoice is proof of a transaction of goods or services offered between a buyer and a seller.

Invoices generally contain information that is nearly identical to a Quotation (goods or services requested, unit price, total price, identity of recipient and seller).

Despite their differences, both quotations and invoices have one thing in common: signatures, stamps, and company logos. This is another aspect of verifying the letter attached to the quote or invoice, and at the same time confirms that the transaction is serious.

Quotation and Invoice Functions in Transactions

Quotation letters and sales invoices both play a major role in a purchase or purchase transaction. The difference between Quotation and Invoice is only visible from the functions and transactions.

Initially, the company will submit a request for goods. They will then find a suitable supplier or suppliers. In this process, vendors with prices and offers match will be found.

They will submit a request for an item after they find a suitable supplier. This is where the supplier will provide an offer with the type and quantity of goods, the unit price of each item and the total price of the goods supplied.

Difference between Quotation and Invoice

In this process, the price may still vary according to the offer requested by the requesting company. After the price is received, the order process will be carried out. The supplier will send the ordered goods.

The recipient checks the goods after the goods are received. They usually check the quality of goods and quantity of goods. If it complies with the request, the recipient must send an invoice to the supplier.

The company that gets the goods will pay the invoice accordingly. The supplier will then provide purchase papers such as receipts including payment for finished goods.

The above flow is a typical buying flow. But the problem that often arises is giving a complicated process and sometimes it is lost due to carelessness and improper paper storage. Other elements can help purchase transactions, such as Quotation, in addition to invoices.

That way, your transactions become simpler and more convenient because you can do everything directly through your PC or cellphone! In addition, the reminder function helps you find out which payments have not been completed. Therefore, leave incomplete transactions as the transaction process is easy to operate.


The following is a question and answer session regarding the discussion that we have conveyed above, see the full answer below.

Definition of Quotations

Offer is a letter of offer given to customers after a request. Its function is to offer prices or services offered by the company to customers. This document is commonly used for B2B transactions.

What is a Bid Invoice?

Invoices or sales invoices are documents that exist as a result of sales activities. This document contains commodity prices, commodity types, VAT, discounts and so on. Sales invoice serves as a form of confirmation or approval of sales transactions between the two parties.

Are Invoices and Quotations the Same?

The offer is made before the buying and selling process takes place. Invoices are made after the buying and selling process is complete. Provide detailed information about the prices of the various products offered.

To whom is the Bid Invoice issued?

Invoices are usually used by sellers to introduce their goods or services to potential buyers. However, an offer letter can also be based on a request from a prospective buyer.


Both are used in the process of buying and selling transactions but have different functions. The offer contains the code and description of the goods or services being offered. Invoice occurs after the goods have been received or the service has been rendered. First, the company makes a request for an item.

After that, they look for suppliers with the right prices and offers. Here the supplier submits an offer that contains the type and quantity of goods. Thus the article that we submitted above, I hope the information we provide is useful, thank you.

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