Financial document guide

Choose the right document before you send it.

Invoices request payment. Receipts prove payment. Quotes and estimates propose work before it starts. Credit notes correct earlier invoices. Use this guide to pick the right document and create it in Invoity.

Create a document Compare document types

Need to get paid?

Use an invoice.

Already got paid?

Use a receipt.

Price before work?

Use a quote or estimate.

Correct an invoice?

Use a credit note.

Financial documents, explained

Each document has a different job. The table below gives search engines and humans the same direct answer: when to use it, when not to use it, and what it proves.

Document	Use when	Do not use when	What it proves	Generator
InvoiceRequest payment after work, delivery, or a billing period.	You have completed work, delivered goods, or need to collect a balance due.	The customer has already paid in full, or the sale is still only a proposal.	Amount due, due date, line items, tax, payment terms, and seller/buyer details.	Open
Tax InvoiceRequest payment while showing sales tax, VAT, or GST separately.	The transaction needs a tax subtotal, tax rate, tax amount, and tax identifier.	No tax needs to be shown, or the document is only a pre-sale estimate.	Taxable sale details, tax charged, business tax ID, and total amount due.	Open
Proforma InvoiceShow expected invoice details before the sale is final.	A buyer needs pricing for approval, shipping, customs, deposits, or budget signoff.	You need to record final revenue or formally demand payment after delivery.	Expected items, prices, terms, and conditions before the final invoice.	Open
ReceiptConfirm that payment has already been received.	A customer paid and needs proof of payment for records or reimbursement.	You are still asking for payment. Use an invoice instead.	Amount paid, payment method, paid balance, payer, payee, and transaction date.	Open
Sales ReceiptRecord a completed itemized sale.	A product or service was sold and paid at the point of sale.	Payment is still outstanding, or you need a buyer order before fulfillment.	Sold items, tax, paid total, payment method, customer, and seller.	Open
Cash ReceiptConfirm a cash payment with a written record.	Cash changed hands and both sides need simple proof of payment.	The payment was not received yet, or the transaction needs bank transfer details.	Who paid, who received cash, amount received, date, reason, and paid balance.	Open
QuoteOffer a specific proposed price before work begins.	You want the customer to approve a firm price within a validity window.	The final scope is still uncertain. Use an estimate instead.	Proposed price, scope, validity date, and terms before acceptance.	Open
EstimateGive an approximate cost before the final scope is known.	The project may change after inspection, discovery, or client decisions.	You are committing to a firm price. Use a quote instead.	Expected costs, assumptions, likely scope, and a non-final total.	Open
Credit NoteReduce, reverse, refund, or adjust a previous invoice.	An original invoice needs a correction, discount, return, refund, or partial reversal.	You are issuing a new charge or simply confirming a payment.	Original invoice reference, credit amount, reason, and adjusted balance.	Open
Purchase OrderLet a buyer formally order goods or services from a supplier.	The buyer wants to authorize a purchase before the supplier invoices.	The seller is requesting payment. Use an invoice instead.	Buyer authorization, supplier, requested items, quantities, totals, and delivery date.	Open
Delivery NoteConfirm delivered goods without showing prices.	Items are shipped or handed over and the recipient needs to confirm delivery.	You need to request payment or show money totals.	Delivered items, quantities, delivery date, order reference, sender, and recipient.	Open

Common comparisons

These are the short distinctions people usually need before choosing a generator.

Invoice vs receipt

An invoice asks for payment. A receipt proves payment has already happened.

Quote vs estimate

A quote is a firmer proposed price. An estimate is approximate when scope or cost may change.

Proforma invoice vs invoice

A proforma invoice previews a sale before it is final. A regular invoice requests payment for a completed or billable transaction.

Credit note vs refund receipt

A credit note adjusts or reverses an invoice balance. A refund receipt confirms money was actually returned.

Purchase order vs invoice

A purchase order comes from the buyer before fulfillment. An invoice comes from the seller to request payment.

Delivery note vs invoice

A delivery note confirms quantities delivered. An invoice shows prices, tax, totals, and payment terms.

Frequently asked questions

What financial document should I send to get paid?

Use an invoice when work is complete, goods were delivered, or a recurring billing period is due. The invoice should include line items, totals, tax if needed, payment terms, and a due date.

Should I send a receipt or an invoice?

Send an invoice before payment to request money. Send a receipt after payment to prove the customer paid.

Should I use a quote or an estimate?

Use a quote when the price is intended to be firm for a set validity period. Use an estimate when the final amount may change because the scope is still uncertain.

When should I create a credit note?

Create a credit note when you need to reduce, reverse, refund, or correct an original invoice. It should reference the original invoice and explain the credit amount.

Is a proforma invoice legally the same as an invoice?

No. A proforma invoice is usually a preliminary document used before a sale is final. It should not be treated as the final payment demand unless local rules say otherwise.

Can Invoity create all of these documents?

Yes. Invoity supports invoices, tax invoices, proforma invoices, receipts, sales receipts, cash receipts, quotes, estimates, credit notes, purchase orders, and delivery notes.