Quote vs. Invoice

A quote and an invoice serve different purposes in a business transaction:

1. Quote:
   - Purpose: A quote, also known as a quotation or estimate, is a document provided by a seller to a potential buyer. It outlines the estimated costs of goods or services that the buyer is interested in.
   - Content: A quote typically includes details such as the description of the products or services, quantity, unit price, total cost, and any terms and conditions.
   - Use: It serves as a formal offer to provide goods or services at a specified price, allowing the buyer to review the costs before making a decision.
   - Legally Binding: In most cases, a quote is not legally binding, meaning that the seller is not obligated to provide the goods or services at the quoted price.

2. Invoice:
   - Purpose: An invoice is a document issued by a seller to a buyer after the goods or services have been provided. It serves as a request for payment.
   - Content: An invoice includes details such as the seller's and buyer's information, a description of the goods or services provided, the quantity, unit price, total amount, payment terms, and any applicable taxes.
   - Use: It is a formal demand for payment and indicates that the transaction has been completed. The buyer is expected to pay the amount specified on the invoice within the agreed-upon terms.
   - Legally Binding: An invoice is a legally binding document that outlines the agreed-upon terms and conditions of the sale.

In summary, a quote is provided before a transaction as an estimate, while an invoice is issued after the transaction has taken place as a request for payment. The quote serves as a proposal, and the invoice serves as a record of the completed sale.

~Written by ChatGPT.