Invoice types
Types of invoices, and when to use each
Estimate, quote, invoice, deposit invoice, receipt: what each document is for, when to send it, and which ones you can make here for free.
Invoice types compared
| Document | What it is | When you send it | Asks for payment? | Make it here |
|---|---|---|---|---|
| Estimate | An approximate price | Before the work | No | Quote & estimate template |
| Quote | A fixed price with an expiry date | Before the work | No | Quote & estimate template |
| Invoice | A request for payment for work done | After the work, or at a milestone | Yes, by a due date | Create an invoice |
| Hourly invoice | An invoice for hours worked at a rate | Weekly, monthly or per job | Yes | Hourly template |
| Deposit or progress invoice | Part of the price, before or during a job | On signing, or at each stage | Yes, that part | How to word it |
| Receipt | Proof that a payment was received | After you are paid | No, it confirms payment | India receipts |
| Proforma invoice | A preliminary bill, for an advance or for customs | Before delivery | Sometimes, as an advance | Coming soon |
| Credit memo | Reduces an invoice already sent | After a return or an overcharge | No, it lowers what is owed | Not yet |
Estimate or quote?
Both come before the work. An estimate is your best guess, and the final bill can differ. A quote is a fixed price for a defined job that holds until a valid-until date. When the customer accepts, the quote becomes the basis of the invoice. Our quote & estimate template makes a document titled Quote, with a valid-until date. Write “Estimate only” in the notes if the price may change.
Invoices for different ways of billing
A standard invoice bills for finished work with a due date. An hourly invoice lists hours worked at your rate. A deposit or progress invoice bills part of the price before or during a job, and the final invoice subtracts what has been paid (see deposits and partial payments). Any of them can charge sales tax by state, and there are templates by industry for the lines your trade uses.
Receipts, proforma invoices and credit memos
A receipt confirms a payment. In India you can already make rent, money and salary receipts here, with the amount in words and a revenue-stamp box when one is needed. A proforma invoice is a preliminary bill used for advance payments and customs; it is coming soon. A credit memo reduces an invoice you have already sent, and we don’t make one yet. Until then, send a corrected invoice and note which one it replaces.
Frequently asked questions
Is an estimate legally binding?
An estimate is usually treated as a best guess, not a promise, though some states have rules for specific trades such as auto repair. A quote the customer accepts is closer to a fixed-price agreement. If the price matters, put the scope and terms in writing.
What is the difference between an invoice and a receipt?
An invoice asks to be paid; a receipt confirms that you were. You send the invoice first, and a receipt after the money arrives, if the customer needs one.
Can I turn a quote into an invoice?
Yes. Signed in, open the accepted quote and choose Convert to invoice: the customer, lines and tax carry over. As a guest, switch the editor to Invoice and enter the agreed lines.