What is a proforma invoice and what is it used for?
Posted: Tue Dec 17, 2024 7:28 am
The data in a proforma invoice can facilitate different decision-making processes.
The proforma invoice should not be confused with the ordinary invoice. Their purpose and effects are different, although both generate a flow of data between clients and suppliers (real or potential). In some cases, similar content can occur in both formats within a short time span.
It is therefore important to be clear about the similarities and differences and to internalise the role that the proforma invoice plays in the progress of your business processes. It will be
canada email list important for your commercial offers, but also for understanding interactions with suppliers and customers.
Unlike other documents, the proforma invoice does not have its profiles marked by a standard . In general, it is usually a computer file or a piece of paper where the conditions of a commercial offer appear in the format of an invoice.
It is also common that, after reaching an agreement , the transaction is carried out under the terms set out in the pro forma invoice. As a result, its reflection in your billing (in the form of an ordinary invoice received or issued) may have a similar content.
When to use a proforma invoice
The purpose of issuing a proforma invoice is to provide the buyer with all the necessary information about the elements that make up the transaction . It usually coincides with the moments prior to the operation, although it does not imply a commitment that it will be carried out or an obligation to pay. There must be an express acceptance by the person receiving it that, after the operation, it will be formalized with a commercial invoice.
One of the uses of this invoice is related to the opening of credits . Also in cases of foreign trade it is used to justify the shipment of merchandise without any commercial value, such as samples, the processing of an import license, etc.
How to make a proforma invoice
The most important thing regarding the characteristics that it must have is that it must explicitly state that it is a proforma invoice . This is the way to avoid misunderstandings.
The proforma invoice should not be confused with the ordinary invoice. Their purpose and effects are different, although both generate a flow of data between clients and suppliers (real or potential). In some cases, similar content can occur in both formats within a short time span.
It is therefore important to be clear about the similarities and differences and to internalise the role that the proforma invoice plays in the progress of your business processes. It will be
canada email list important for your commercial offers, but also for understanding interactions with suppliers and customers.
Unlike other documents, the proforma invoice does not have its profiles marked by a standard . In general, it is usually a computer file or a piece of paper where the conditions of a commercial offer appear in the format of an invoice.
It is also common that, after reaching an agreement , the transaction is carried out under the terms set out in the pro forma invoice. As a result, its reflection in your billing (in the form of an ordinary invoice received or issued) may have a similar content.
When to use a proforma invoice
The purpose of issuing a proforma invoice is to provide the buyer with all the necessary information about the elements that make up the transaction . It usually coincides with the moments prior to the operation, although it does not imply a commitment that it will be carried out or an obligation to pay. There must be an express acceptance by the person receiving it that, after the operation, it will be formalized with a commercial invoice.
One of the uses of this invoice is related to the opening of credits . Also in cases of foreign trade it is used to justify the shipment of merchandise without any commercial value, such as samples, the processing of an import license, etc.
How to make a proforma invoice
The most important thing regarding the characteristics that it must have is that it must explicitly state that it is a proforma invoice . This is the way to avoid misunderstandings.