Business Documents: Quote to Receipt

The eight documents behind a sale, in the order they are issued, with a comparison page for every pair that gets confused and a checklist for each.

Every sale that goes through paperwork passes through the same eight documents, or a subset of them: quote, sales order, purchase order, proforma invoice, delivery note, invoice, credit note and receipt. Each is issued by one side, at one moment, for one purpose, and most disputes between small businesses and their customers come from two of them being confused, issued out of order, or missing. This hub holds one page for each pair that gets mixed up in practice and one checklist page per document listing what it must contain. The comparison pages use a single running scenario, a joinery supplying worktops to a café, so the numbers on one page match the numbers on the next.

The order-to-cash flow

Read the flow left to right. The seller opens with a quote; the buyer answers with a purchase order; the seller confirms with a sales order and, if money is needed up front, a proforma invoice; the goods travel with a delivery note; the invoice follows delivery; a credit note corrects the invoice if something went wrong; and the receipt closes the transaction when payment lands. Not every sale needs every document, but the order never changes, and a document issued out of sequence is the first sign that something upstream is missing.

Document Issued by Commitment Requests payment? Make one with
1. Quotethe selleroffer onlynoQuotation Maker
2. Sales orderthe sellerconfirms the dealnoQuotation Maker
3. Purchase orderthe buyerbinding once acceptednoPurchase Order Generator
4. Proforma invoicethe sellernot bindingnoInvoice Maker
5. Delivery notethe sellerevidentialnoPurchase Order Generator
6. Invoicethe sellercreates the debtyesInvoice Maker
7. Credit note (if needed)the sellerreverses part or all of an invoicenoInvoice Maker
8. Receiptthe selleracknowledges paymentnoInvoice Maker

Comparisons

If you are the seller, you will issue everything except the purchase order. If you are the buyer, the purchase order is yours and the rest arrive from suppliers. The generators linked from each page produce the seller's documents in the browser; nothing you type is uploaded. The one comparison that already has its own long-form guide, purchase order versus invoice, links to that guide rather than repeating it.

Purchase order vs invoiceThe long-form guide to the most confused pair of all. Quote vs invoiceoffer vs demand for payment Quote vs proforma invoiceoffer vs preliminary bill Quote vs purchase orderoffer vs commitment Quote vs sales orderoffer vs acceptance Sales order vs purchase orderacceptance vs commitment Proforma invoice vs invoicepreliminary bill vs demand for payment Purchase order vs proforma invoicecommitment vs preliminary bill Delivery note vs invoiceproof of delivery vs demand for payment Invoice vs receiptdemand for payment vs proof of payment Invoice vs credit notedemand for payment vs correction Purchase order vs delivery notecommitment vs proof of delivery Sales order vs invoiceacceptance vs demand for payment Proforma invoice vs receiptpreliminary bill vs proof of payment Credit note vs receiptcorrection vs proof of payment Delivery note vs receiptproof of delivery vs proof of payment Purchase order vs receiptcommitment vs proof of payment

Checklists

Frequently Asked Questions

Which business document comes first?

The quote, from the seller. The buyer answers with a purchase order, the seller confirms with a sales order, goods travel with a delivery note, the invoice follows delivery, and the receipt closes the sale once it is paid.

Which documents actually require payment?

Only the invoice. Quotes, orders, proformas and delivery notes commit or record things but do not create a debt; the credit note reduces one; the receipt proves one was settled.

Do I need all eight documents for every sale?

No. A shop sale can be an invoice and a receipt. Use the order and delivery documents when there is a gap between agreeing and delivering, and the proforma when money is needed before shipment.

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