Explained
An invoice is not a quotation and not a receipt: a quotation is a proposal before the agreement, a receipt says the money arrived, and an invoice sits between them as a standing claim for a debt. That is why an invoice already issued and handed over is never edited — a mistake is corrected by a credit note raised against it and referring to it by number.
Example
An invoice of 10,000 before tax at 15%: the total due is 11,500.
Related terms
- Tax invoiceA tax invoice is issued by a VAT-registered seller and shows the value of the goods or services, the VAT on them and the seller’s tax number.
- QuotationA quotation is the document a seller sends a customer with items, prices and terms before agreement, valid for a stated period.
- Credit noteA credit note is the document that reduces an invoice already issued, because of a return, a discount or a mistake on the invoice.
- Proforma invoiceA proforma invoice looks like an invoice and is sent before delivery so the buyer knows the expected amount — it is not a claim for a debt and is never posted to the books.