DIFFRENCE BETWEEN PROFORMA INVOICE AND INVOICE

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  • 1. DIFFRENCE BETWEEN PROFORMA INVOICE AND INVOICE PROFORMA INVOICE INVOICE 1. Proforma invoice is the duplicate copy of actual invoice which is sent to customer in prior to billing for information purpose Invoice is the actual invoice for which the customer is billed 2. A pro forma invoice only needs to include sufficient information to allow for a determination of duties and examination an invoice must disclose certain required information, including a description and quantity of each item being shipped, the value of the shipment in both U.S. dollars and in the foreign currency, the country of origin, location of purchase, and the names and address of both the seller and the purchaser 3. The importing business provides a pro forma invoice. The exporting business provides the commercial invoice; 4. Proforma Invoice: Preparing the bill from Invoice : Invoice is an document received the seller to the buyer for the payment for from the sellers to the buyers including all their materials received. the details of the -product, quantity, price etc. 5. When seller sends quotation to the buyer about the quantities and the tentative prices at which buyer can buy is called Performa Invoice. When buyer accepts to buy the quantities at specified prices then the deal is called Invoice. 6. Pro Forma Invoice: This Pro-forma invoice is one which is sent before the commercial Invoice (original invoice) to receive advance payment from buyer. The seller will not record this as 'Account Receivable' in his account and buyer will not record it as 'Accounts Payable in his account. This is not true invoice. 7. Proforma invoice is an invoice or quotation sent by exporter to buyer before commercial invoice in which a particular estimate of product demanded is sent & is not recorded as 'accounts receivable' by exporter or 'accounts payable' by buyer. It's not a true one. Invoice" This is true invoice where in the seller and buyer will record in their 'Accounts Receivable section' and 'Accounts Payable Section'. Payment will be done once the invoice is received by the buyer. Invoice is the one sent by exporter to buyer in which a detailed description of goods with quantity, price, weight etc. is provided with an accurate amount to be paid & is recorded as 'accounts receivable' or vice versa. It’s the true one. MONEY AND BANKING Page 1
  • 2. 8. Abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. Pro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importation. 9. Proforma invoice: when the consignor sends goods on consignment, he prepares an invoice and sends it to the consignee. This is called "Proforma Invoice". It is statement containing the details of goods consigned. It gives the particulars of quality, quantity, and price of goods consigned, details of any expenses incurred also, some times the mode of marketing. An invoice is a bill sent by a provider of a product or service to the purchaser. The invoice establishes an obligation on the part of the purchaser to pay, creating an account receivable. Invoice is a statement sent by the seller to buyer in the normal business. Invoice contains the quality, quantity and price of the goods. Delivery location and terms and conditions of the payment conditions. 10. A pro forma invoice shows a description of Invoice is the REAL one what you are going to goods to be sold, quantity and price. pay, you can use it for reclaim VAT, too. However, it is not a VAT invoice and cannot be used to reclaim VAT. It is often used for a new customer. You can also change the pay details, items ... in case the client should not agree with them. MONEY AND BANKING Page 2