Invoice vs Receipt vs Quotation vs Proforma

Choose by purpose, not appearance

Four documents, four different jobs

Document	Use it for	Check especially	SunnyBill tool
Quotation	A proposed scope and price before acceptance	What is included, exclusions and validity date	Create a quotation
Proforma	A preliminary statement of proposed transaction details	Its purpose and clear preliminary status	Create a proforma
Invoice	Billing for the agreed transaction	Amount due, due date, invoice number and payment instructions	Create an invoice
Receipt	Acknowledging a payment actually received	Payment date, amount, method and related invoice	Create a receipt

GOV.UK distinguishes an invoice from a receipt, which acknowledges payment. Exact legal and tax treatment depends on jurisdiction and the transaction. A document's label cannot override the underlying facts or local requirements.

One project from proposal to payment

Imagine a freelance designer offers a fixed-scope brochure for USD 1,200. This fictional example leaves tax out to focus on document flow; it does not imply that this service is tax-exempt.

1. Quote QUO-2026-014: describe the page count, deliverables, two agreed revision rounds, price and validity date. Tell the client how to accept the offer. Keep their acceptance with the project record.
2. Invoice INV-2026-038: when the contract's billing milestone is reached, bill the agreed USD 1,200, reference QUO-2026-014, and state the payment deadline and method. The issue date belongs to the invoice, not the old quote.
3. Receipt RCP-2026-022: after confirming the USD 1,200 payment, acknowledge the amount, date received and invoice reference. Do not issue it merely because the client says they plan to pay.

The cross-references connect the documents; they do not require identical numbers. Keep each document in its own series, as explained in our invoice numbering guide. If the accepted scope changes, document the change before billing it. Conversion cannot decide whether additional work was authorized.

Where a proforma fits

A buyer may request preliminary transaction details to arrange an internal approval or understand a proposed order. A proforma can present those details without being the final invoice. It is not a mandatory extra stage for every freelancer.

SunnyBill's proforma explicitly states that it is not a tax invoice or a demand for payment. If you need to bill a deposit, do not assume a proforma fulfils the required tax or accounting role: determine the correct document under your contract and local rules. The UK VAT guide discusses proforma invoices and the need for proper VAT invoicing when applicable.

For international goods, customs and shipping documentation can require information this general-purpose tool does not validate. Confirm the buyer's and carrier's requirements rather than assuming any proforma PDF will be accepted.

Use conversion as a starting point

SunnyBill provides quotation-to-invoice, proforma-to-invoice and invoice-to-receipt actions. These reuse the existing draft's details. They do not confirm client acceptance, check a bank account, send an email or update an external accounting ledger.

• Save the original exported document before conversion.
• Assign the right number and date for the new document.
• Replace a quotation's validity deadline with the invoice's agreed due date.
• Review the currency, tax treatment and payment details after changing document type.
• For a receipt, check the actual amount received and payment method against your records.

What if the client pays only part?

Suppose USD 400 arrives against the USD 1,200 invoice. Your records should show USD 400 received and USD 800 outstanding, assuming no other adjustments. Do not describe the whole invoice as settled or send a receipt that suggests USD 1,200 was received.

Inspect the rendered receipt carefully, especially any “paid” wording. Use a document and recordkeeping workflow that clearly distinguishes the payment from the invoice balance. SunnyBill is a browser-based document tool, not an accounts-receivable system that reconciles instalments for you.

Before sending any document, use the practical review checklist. For deadlines and collection wording, continue with invoice payment terms.