Proforma Invoice Hide Tick For Free

A proforma invoice is usually sent when a customer has committed to a purchase but can't be sent an official invoice because the final details haven't been confirmed. On the other hand, a quote is sent to a customer who has made an enquiry but wants more information before making a commitment to buy anything.

Proforma invoice is used for the creation of sales, whereas invoice is used for confirmation of sale. Proforma invoice is provided by the seller, on the request of the buyer before the placement of the order. As opposed to invoice, which is issued by the seller to the buyer to request payment of goods delivered.

The simple answer is no, a payment can't be made on a proforma invoice. However, in order to understand why, the difference between proforma invoices and standard invoices must be understood.

The shipping document that is usually used is either a Proforma Invoice or a Commercial Invoice. Proforma Invoices are usually used for customs purposes only, often where unsold goods are being shipped. Commercial Invoices are usually used where sold goods are being shipped.

As a proforma invoice is not a legally binding document, or the official invoice used for accounting, they do not need to be cancelled.

Proforma invoices serve as a sort of good faith agreement between you and your customer. They are a baseline for a sale, a breakdown of the items with an accurate indication of the total amount due but you are not requesting payment.

Whereas the proforma invoice is like a quotation, is not legally binding and is sent before the sale and details have been confirmed. A sales invoice can also serve as a tax invoice, since it includes VAT/GST and other taxes. The final sales invoice can be used to reclaim VAT/GST.