Can a proposal double as an invoice?

Plenty of firms send one document that becomes payable on approval, and it works — but keep the states distinct in your records. A proposal that has not been approved is not revenue, and treating it as such overstates what the business has earned.

What happens if a client approves and then changes their mind?

It depends entirely on where the order is. Before the purchase order goes out, nothing is lost. After it does, you are bound by the vendor's cancellation terms — which for custom and COM orders usually means no cancellation at all once production has started.

DefinitionUpdated July 31, 20262 min read

Design proposal: the document that authorises you to spend

A proposal is the itemised list of goods a client approves before anything is ordered. How it differs from an invoice and a purchase order, and what has to be on it for the approval to mean something.

By Idan Mann, founder of NYA

The short answer

A proposal is an offer: the itemised goods, prices, quantities and lead times a client approves before you buy anything. An invoice is a demand for payment on what has been approved. A purchase order is your instruction to the vendor. The proposal is the only one of the three the client signs.

Purchasing starts with an approval, and the approval has to be attached to a specific list of things at specific prices. That is all a proposal is — but the discipline of it is what stands between you and paying a restocking fee on a chair the client remembers differently.

Three documents, three directions

Document	From → to	What it does
Proposal	Designer → client	Offers specific goods at specific prices for approval
Purchase order	Designer → vendor	Orders the approved goods, with sidemark and terms
Invoice	Designer → client	Requests payment for approved goods or fees

Approval flows one way: nothing should appear on a purchase order that did not first appear on an approved proposal.

What makes an approval binding in practice

Line-item detail — manufacturer, finish, quantity, room — not a lump sum per space. The tearsheet is what the client looks at; the line is what they approve.
The client price, plus how freight, receiving and tax will be handled. Surprises here are the most common source of disputes.
Lead times, stated per item, so the install date is a shared expectation rather than your private worry.
Terms: deposit required to order, cancellation and restocking policy, and the fact that custom orders cannot be cancelled once in production.
A dated approval — a signature, or a recorded per-item acceptance. Per-item is better: it tells you precisely what was approved and when.

The reason to record approvals per item rather than per proposal is that projects change. When a client asks in month five why they own two floor lamps, the answer should be a timestamp, not a memory.

Common questions

Can a proposal double as an invoice?: Plenty of firms send one document that becomes payable on approval, and it works — but keep the states distinct in your records. A proposal that has not been approved is not revenue, and treating it as such overstates what the business has earned.
What happens if a client approves and then changes their mind?: It depends entirely on where the order is. Before the purchase order goes out, nothing is lost. After it does, you are bound by the vendor's cancellation terms — which for custom and COM orders usually means no cancellation at all once production has started.

Keep reading

Design proposal: the document that authorises you to spend

By Idan Mann, founder of NYA

The short answer

Three documents, three directions

Document	From → to	What it does
Proposal	Designer → client	Offers specific goods at specific prices for approval
Purchase order	Designer → vendor	Orders the approved goods, with sidemark and terms
Invoice	Designer → client	Requests payment for approved goods or fees

Approval flows one way: nothing should appear on a purchase order that did not first appear on an approved proposal.

What makes an approval binding in practice

Line-item detail — manufacturer, finish, quantity, room — not a lump sum per space. The tearsheet is what the client looks at; the line is what they approve.

The client price, plus how freight, receiving and tax will be handled. Surprises here are the most common source of disputes.

Lead times, stated per item, so the install date is a shared expectation rather than your private worry.

Terms: deposit required to order, cancellation and restocking policy, and the fact that custom orders cannot be cancelled once in production.

A dated approval — a signature, or a recorded per-item acceptance. Per-item is better: it tells you precisely what was approved and when.

Common questions

Can a proposal double as an invoice?: Plenty of firms send one document that becomes payable on approval, and it works — but keep the states distinct in your records. A proposal that has not been approved is not revenue, and treating it as such overstates what the business has earned.
What happens if a client approves and then changes their mind?: It depends entirely on where the order is. Before the purchase order goes out, nothing is lost. After it does, you are bound by the vendor's cancellation terms — which for custom and COM orders usually means no cancellation at all once production has started.