Proforma Invoice Remove Dropdown List For Free

A Proforma Invoice is an important document that is created by the seller of goods.The Proforma invoice will include the seller's bank details so that the buyer can arrange payments as required.

Since it is a quotation for goods under question, the buyer is not required to make payment against such an invoice. In other words, such an invoice is not a tax invoice as it does not lead to recording of accounts receivable for seller and accounts payable for buyer. Thus, Pro Forma GST Invoice is not legally binding.

Proforma invoices are not legally binding and are not counted as official sales in your accounting department. Traditional invoices confirm a purchase or sale, whereas proforma invoices are just a way to establish the terms of the sale.

However, the difference is, the origin: the seller prepares and sends a proforma invoice to the buyer. When it comes to a purchase order, it's the buyer (and its accounts payable department) who issues and sends it to the seller and uses the document for invoice matching when disbursing payment.

Like a regular invoice, proforma invoices should include contact details, a date of issue, a description of the goods or services provided, the total amount due, and any VAT. They might also include payment terms such as which methods of payment you accept and when payment is expected.

The pro-forma invoice is issued before sales takes place. Once after receiving pro-forma invoice from the supplier, the buyer sends a purchase order or opens a letter of credit to the supplier.

Proforma Invoice is a preliminary sales invoice that contains an estimated price and commission.It also includes estimated costs of shipment, taxes, and commissions (as applicable).