The difference between invoice and receipt is timing and purpose. An invoice is sent before payment to ask the customer to pay a stated amount by a set date. A receipt is issued after payment to prove the money was received. In most sales, a quotation comes first, the invoice next and the receipt last.
Below are all six sales documents a Nigerian business handles on one timeline, plus which one to issue for deposits, instalments and deliveries.
The sales paperwork timeline: from quotation to receipt
Each document answers one question at one stage of the sale:
- Quotation or estimate (seller to buyer): “This is what it will cost.”
- Proforma invoice (seller to buyer): “This is what the invoice will look like if you go ahead.”
- Purchase order (buyer to seller): “Please supply these items at these prices.”
- Delivery note or waybill (travels with the goods): “These items were handed over and signed for.”
- Invoice (seller to buyer): “Please pay this amount by this date.”
- Receipt (seller to buyer): “We received your payment.”
Not every sale needs all six. A walk-in salon customer may only need a receipt. A school usually issues a fee bill (an invoice) and a receipt for each payment. A supplier to a supermarket may see the full set.
Quotation or estimate: before the work starts
A quotation is your offer: the items or services, the price, how long the price holds and your payment terms. An estimate is a best guess that can change once the job is clearer, such as a repair where the final scope isn’t known yet. If you mean a fixed price, call it a quotation.
The quotation vs invoice question comes down to what you are asking for. A quotation asks, “Do you accept this price?” An invoice says, “You owe this amount, please pay.”
Give every quotation a validity date, especially when your costs move with the exchange rate. The free quotation and estimate maker lets you set a “valid until” date and add your terms.
Proforma invoice: a preview, not a demand for payment
A proforma invoice looks like an invoice, with the same items, prices and totals, but no sale has happened yet. It is a good-faith document, not a formal request for payment, and it shouldn’t go into your sales records or list of debtors. Xero’s guide describes it the same way.
Use one when a customer needs paperwork before they can commit, such as a company whose finance team must approve the spend. Give proformas their own number series (for example PF-031) so nobody mistakes them for real invoices.
That is the short answer to proforma invoice vs invoice: the proforma says what the bill will be, the invoice says what is owed. Once the customer confirms, issue the real invoice. The free invoice generator has a proforma mode, so you can prepare both from the same details.
Purchase order and delivery note (waybill): the buyer’s and the driver’s paperwork
Purchase order vs invoice
A purchase order (PO) comes from the buyer. It says what they want, how many, at what price, and where and when to deliver. An invoice comes from the seller after the supply. The PO says “we want this”; the invoice says “we supplied it, please pay”.
Check a customer’s PO before you accept it, because once accepted you should treat it as a commitment. Then quote the PO number on your invoice, because many accounts teams match each invoice to an order before they pay. If you buy from suppliers yourself, a simple purchase order template keeps your orders in writing.
What is a delivery note?
A delivery note travels with the goods. It lists the items and quantities, usually without prices, and the person receiving them signs and dates it. In Nigeria many businesses call this paper a waybill, though transport and courier companies also use “waybill” for their own consignment note.
The signed copy is your proof that the goods arrived. If a customer later says three cartons were missing, it shows what they counted and signed for. The delivery note and waybill maker includes a signature line for the receiver.
Difference between invoice and receipt: side-by-side table
| Document | Who issues it | When | What it shows | Asks for payment? |
|---|---|---|---|---|
| Quotation or estimate | Seller | Before the sale | The price offered and how long it holds | No |
| Proforma invoice | Seller | Before the sale is confirmed | What the invoice will be | No, it is a preview |
| Purchase order | Buyer | Before supply | What the buyer ordered, at what price | No |
| Delivery note or waybill | Seller or carrier | At delivery | What was handed over and signed for | No |
| Invoice | Seller | After supply, or when payment falls due | What the buyer owes, and by when | Yes |
| Receipt | Seller | After each payment | That money was received | No, it confirms payment |
So in the invoice vs receipt question, an invoice is not proof of payment and a receipt is not a bill. If a customer, an employer refunding staff expenses or an auditor asks for proof that something was paid, they want a receipt or the bank record of the transfer. If they want to see what was charged and the VAT on it, they want the invoice.
Deposits, part payments and balance due: which document to issue
The rule that keeps this simple: one invoice for the full amount, one receipt for every payment. Each receipt shows the amount paid, what it was for, the invoice number it relates to and the balance still due.
School fees paid in instalments
A school bills a parent ₦250,000 for the term. The parent pays ₦150,000 in September and ₦100,000 in October. The school issues one fee invoice and two receipts: the first shows ₦100,000 outstanding, the second a balance of zero.
A salon deposit for a bridal booking
A salon quotes a bridal package and asks for a deposit to hold the date. When the deposit lands, it sends a receipt marked “deposit”, with the event date and the balance due. On the day, it collects the balance and issues a final receipt. If the family wants an invoice before paying, send that first.
A supplier delivery with a waybill
A supermarket sends a PO for 40 cartons of juice. The supplier delivers with a waybill, and the store manager signs for 40 cartons. The supplier invoices, quoting the PO and waybill numbers, and sends a receipt once the transfer clears. The accounts team now has four papers that agree.
The receipt generator shows the payment method, the amount in words and the balance due, and the invoice generator handles part payments, so both sides of an instalment plan stay in step.
Can one document do two jobs? “Paid” invoices and receipts
Sometimes. Many businesses accept an invoice clearly marked “paid”, with a balance of zero, in place of a separate receipt. At a shop counter, one receipt listing the items and prices does both jobs, because payment happens at once. When payment comes later, a separate receipt is cleaner because it records the date, payment method and transfer reference.
- Never issue a receipt before the money has arrived. A transfer screenshot is not a credit alert.
- Never send a proforma when the customer has agreed and you expect payment. Send the invoice.
- Don’t quietly edit an invoice you’ve already sent. Issue a corrected one with a new number and say which one it replaces.
Keep numbers and details consistent across all your documents
If you change one habit after reading this, make it numbering. Give each document type its own series (QT-, PF-, PO-, DN-, INV-, RC-) and quote the earlier number on the next document.
Your business details should match too. In a July 2026 public notice, the Corporate Affairs Commission said it would fully enforce sections 304 and 729(1)(c) of CAMA 2020 from 1 August 2026. The notice is framed around business letters, but section 729(1)(c) itself names invoices and receipts: a company’s registered name and RC number must appear on them. Section 304 requires every director’s name, and the nationality of any non-Nigerian director, on business letters. Quotations and delivery notes are not named, so I would simply put one footer with all these details on every template and check it against your current CAC records.
If you charge VAT, show it as a separate line. The rate stayed at 7.5% under the Nigeria Tax Act 2025, in force since 1 January 2026, as Forvis Mazars explains. Business customers care because section 21(p) of the Act makes an expense non-deductible for income tax when VAT was due on it but not charged, as PwC’s Nigeria tax summary notes. The invoice generator’s VAT field starts at 7.5% and can be changed, or set to 0 where VAT doesn’t apply.
The Nigeria Revenue Service (formerly FIRS) is phasing in e-invoicing: large taxpayers went first, and medium taxpayers with turnover between ₦1 billion and ₦5 billion were scheduled to go live from 1 July 2026, according to KPMG’s summary of the NRS timeline. If that’s you, ask your tax adviser how your invoices must be sent.
Every document in this guide is free to make in your browser, with no sign-up, on the Business Tools page.
Frequently asked questions
Is an invoice proof of payment?
No. An invoice shows what a customer owes, not what they have paid. Proof of payment is a receipt from the seller, or the bank record of the transfer. Many businesses accept an invoice clearly marked “paid” with a zero balance, but a receipt is the clearer record.
What is the difference between a quotation and an invoice?
A quotation comes before the sale and offers a price for the customer to accept, usually for a limited period. An invoice comes after the customer has agreed or the work is done, and asks them to pay a stated amount by a due date. A quotation asks for a decision; an invoice asks for payment.
Is a proforma invoice the same as an invoice?
No. A proforma invoice is a preview of the bill, sent before a sale is confirmed so the customer can approve it or arrange payment. It is not a formal demand for payment and should not go into your sales records. Once the order is confirmed, issue a proper invoice with its own number.
Which document do I give for a deposit?
Give a receipt for the deposit as soon as the money arrives. Mark it as a deposit, link it to the quotation or invoice number and show the balance still due. When the customer pays the balance, issue a second receipt showing a balance of zero: one invoice, one receipt per payment.
