Guides · Basics
Invoice vs receipt vs quotation: what's the difference?
What a quotation, invoice and receipt each mean, when to issue each one, how they flow together, and where e-Invoice fits — a plain-English guide for Malaysian SMEs.
The one-line difference
A quotation is a price offer before a sale. An invoice is a request for payment after you've agreed to supply. A receipt is proof that payment was received. Same customer, three different moments.
Quotation
A quotation (or quote) tells a customer what something will cost before they commit. It's not a demand for payment and it doesn't record a sale in your books — it's a proposal. Good quotations show the scope, the price, any tax, and how long the price is valid.
When the customer accepts, the quotation usually converts into an invoice.
Invoice
An invoice is issued once you've agreed to supply goods or services. It requests payment, states what's owed and by when, and is the document that matters for tax — it carries your SST treatment and is what gets submitted for e-Invoice (MyInvois) when that applies to you. An invoice creates a receivable: money the customer now owes you.
Keep every invoice; it's a core business record.
Receipt
A receipt confirms that payment has been received. You issue it after the customer pays, as their proof of payment. An invoice says 'please pay'; a receipt says 'paid, thank you'. For part-payments you can issue a receipt for the amount actually received.
Don't confuse the two: an unpaid invoice is not a receipt, and a receipt on its own doesn't explain what was sold.
How they flow together
The usual order is: quotation → (customer accepts) → invoice → customer pays → receipt. Not every sale needs a quotation (walk-in retail often goes straight to invoice or receipt), but the invoice-then-receipt pair is the backbone.
Where e-Invoice fits: it's the invoice that goes to MyInvois for validation, not the quotation or the receipt. Good software carries a quote through to an invoice and then records the payment and receipt, so nothing is re-typed.
Questions, answered
Is a quotation legally binding?+
A quotation is an offer, not a demand for payment. It generally isn't a sale until the customer accepts it. Once accepted and supplied, you invoice for it.
Can I use an invoice as a receipt?+
No. An invoice requests payment; a receipt confirms payment was received. You issue the receipt after the customer pays. Some businesses stamp an invoice 'PAID', but a proper receipt is clearer.
Which document goes to MyInvois for e-Invoice?+
The invoice. e-Invoice / MyInvois validation applies to the tax invoice, not the quotation or the receipt. Confirm e-Invoice against your own LHDN filing phase.
Does Orbit Finance handle all three?+
Yes — Orbit Finance creates quotations that convert to invoices, records payments, and issues receipts, keeping the whole chain together with your books.
Quotes, invoices & receipts in one place
Orbit Finance turns a quote into an invoice, then records the payment and receipt. One-time RM 100.00.