Blessing runs a printing company in Enugu. When a client asks for "an invoice to approve the job," she sends a regular invoice. When a client asks for "a quote," she writes a message in WhatsApp with some prices. When a client needs "something official but not the final bill," she is not sure what to send.
She is not alone. Most Nigerian MSME owners use these three terms interchangeably — and the confusion costs them: arguments about price changes, clients refusing to pay because "we never agreed to that," tax questions about documents issued before any work was done.
Here is what each document actually means, when to use it, and how the flow works.
The key distinction is timing relative to the work:
A quote (sometimes called a quotation) is a written price proposal. You are telling the client: "If you hire me for this specific scope of work, here is what I will charge."
A quote is not a formal financial document — it has no tax implications, no legal status as a payment demand, and does not create a liability. It is an offer the client can accept or reject.
Quotes are typically informal. Many Nigerian businesses send quotes by WhatsApp, email, or even verbal. But a written quote with a clear scope and validity period is far better than a verbal one: it prevents "I thought you said ₦200,000?" conversations later.
A quote should include:
Lucrive does not have a dedicated quote document type. Use a proforma invoice to serve the same purpose — it is a more formal version of the same idea, and it carries your business branding.
A proforma invoice looks exactly like a real invoice — it has your business details, the client's details, line items, amounts, and totals. But it is explicitly labelled "PROFORMA INVOICE" and includes a note that it is not a tax invoice and creates no VAT obligation.
The key rule: a proforma invoice is not a demand for payment. It is a detailed preview of what the invoice will look like, used to get client approval, request a deposit, or facilitate a purchase order or import/export documentation.
When to use a proforma invoice:
① Before work starts, to confirm the price and scope. Send a proforma and ask the client to confirm in writing that they agree to the price and scope before you begin.
② To request a deposit. "Please pay the 50% deposit shown on the proforma invoice to confirm your booking" is a common and correct usage.
③ For import/export purposes. Customs authorities sometimes require a proforma invoice to value a shipment before the final commercial invoice is issued.
④ When the client needs "something official" to process a purchase order. Large corporate clients often need a proforma invoice to initiate their internal approval process before they can issue a purchase order.
In Lucrive, creating a proforma invoice is simple:
① Open Invoices → New Invoice
② Change the document type from Invoice to Proforma Invoice
③ Fill in the client, line items, and amounts as you would for a real invoice
④ Save and send
The PDF will be headed "PROFORMA INVOICE" and include the disclaimer: "This is not a tax invoice. No VAT obligation is created by this document."
The proforma invoice gets its own number (starting with PRO-) so it is tracked separately from your real invoices. When the client confirms and you are ready to issue the real invoice, you convert the proforma — Lucrive carries over the client, line items, and amounts automatically and assigns a new INV- number.
An invoice is a formal payment request. When you issue an invoice, you are stating: "You owe me ₦X for the goods or services described below. Please pay by [date]."
An invoice:
When to issue an invoice:
Do not issue an invoice for work you have not yet agreed to do. That is what a proforma is for.
For a typical Nigerian MSME project — a design job, a printing order, a consulting engagement, a construction contract:
Client enquiry
↓
Quote / Proforma Invoice sent — client reviews and agrees
↓
Deposit paid (if required)
↓
Work begins and is delivered
↓
Invoice issued for remaining balance (or full amount if no deposit)
↓
Payment received
↓
Receipt issuedThe proforma captures the agreement. The invoice captures the payment demand. The receipt confirms payment was received.
Skipping the proforma and going straight to an invoice before work begins is common but creates problems: if the client disputes the scope later, your only documentation is an invoice — which looks like you are demanding payment for work they say they did not agree to.
Issuing a VAT invoice for work not yet agreed. A VAT invoice creates a VAT liability — you owe the NRS the VAT shown on it, even if the client never pays you. Use a proforma until the work is confirmed.
Not converting the proforma to an invoice. Some businesses send a proforma, receive payment, and never issue a formal invoice. The client then cannot claim the expense for tax purposes, and your books show an unmatched proforma. Always issue the final invoice.
Sending a quote with no validity period. A client who received a quote six months ago can hold you to it. Include a validity period: "This quote is valid for 14 days from the date above."
Calling everything an invoice. A proforma sent before work is agreed, labelled as an "invoice," creates confusion about when payment is due and whether a VAT liability has been created. Use the right document at the right time.
Lucrive supports four document types:
Each type gets its own numbered series, so your INV- and PRO- sequences are tracked separately. Proforma invoices are not counted in your invoice limit for free-plan users — only finalised invoices count.
To change the document type when creating a new document, use the type dropdown at the top of the invoice form before entering any details. You can also convert a proforma to an invoice later: open the proforma from your invoice list and click Convert to Invoice.
Create your first proforma invoice in Lucrive →
When a client asks for "an invoice to approve the job" — send a proforma invoice. They mean they want to see the price before committing.
When a client asks for "a quote" — send a proforma invoice with a validity period. It serves the same purpose as a quote but is more professional and can be tracked in Lucrive.
When a client has confirmed the job and the work is complete — send an invoice. That is when the payment obligation begins.
When a client has paid and you want to give them proof — issue a receipt. That confirms the money was received. For walk-in cash or POS sales where there was never an invoice, see Cash Sale Receipt in Nigeria: What It Is and How to Issue One.
One document for each stage. No guessing.