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When to use quotations versus sales orders

Two business people reviewing paperwork together at a meeting table

Quotations are for exploration: price discovery, approvals, and “maybe later.” Sales orders are for commitment: allocate attention, reserve stock where appropriate, and prepare fulfilment without pretending the invoice is paid.

If your team uses quotations as a parking lot for every verbal promise, you will not trust your pipeline. If you jump straight to invoices for partial fulfilment, you will not trust your inventory.

A practical rule: if money is not expected today but work should start, a sales order is often cleaner than a draft invoice. If the customer needs a formal price document to get internal approval, a quotation is the right wrapper.

BillDiary supports drafts, quotations, orders, and conversion flows so the document matches the moment—rather than forcing every business into one template.

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