The difference between Quotation and Pro forma invoice can be understood as follow:
Quotation: A quotation is a document that provides a potential customer with an estimate of the cost of goods or services before a purchase.
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Purpose:
To offer a price estimate for goods or services, allowing the potential buyer to compare offers and make a decision. -
Timing:
Sent early in the sales process, before a purchase order is placed.
Pro forma invoice: A proforma invoice is a preliminary invoice issued after a customer has expressed genuine interest in a purchase and the terms have been agreed upon.
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Purpose:
To provide a more detailed and formal estimate of the costs of goods or services after the customer has agreed to the purchase and terms. -
Timing:
Sent after a purchase order has been placed, once the prices and terms are agreed upon.