![]() This is different from a proforma document which does not include prices. It should give an overview of the costs and quantities of the products and services. The main purpose of a proforma invoice is to ensure that the seller and their customer are aligned on their agreement, especially about the price of the goods and services. ![]() It is sent before the goods and services are delivered. It is an estimate or quote that outlines the goods and services that a seller will provide to their customer. What is a proforma invoice?Ī proforma invoice is issued before a job is complete. It is used commonly as a quotation or for customs purposes on imports. It should list the work to be completed under the arrangement with your client as well as the quantity of work and the price.Ī proforma invoice is neither an invoice nor a request for payment so it cannot be used for accounting purposes. You can see it as a commitment to goods or services that are yet to be delivered. IT Docs is an export documentation program that makes the generation of internationally compliant and uniformed documents a breeze.A proforma invoice is a preliminary bill of sale that you send to your client before the work has been completed. *CVEN uses and is a big supporter of Intertrade Docs (IT Docs). If you could benefit from some export document support our team can help you make sure you have everything you need (and show you some of the tricks along the way). There is a lot of room for misunderstandings in international trade and that’s why export documents are standardised and play a key role to ensure all parties are aware of the terms of the agreement. You will hear us harp on this over and over again, but a good set of export documents and procedures will ensure your export growth is made with confidence and with the risks clearly understood. It will be presented to customs officials at the time of import and serve as an important document in the buyer’s importation process.Ĭlick here to download a sample of a commercial invoice. The commercial invoice is an important customs document as it’s a declaration by you as to the goods, their value, their origin and their tariff code. ![]() So now you have a handle on a Proforma invoice, what’s a commercial invoice?Ī commercial Invoice contains much of the same details as the proforma invoice except that this document evidences the completed transaction rather than a proposed (or proforma) sale.Ĭommercial invoices are issued after the goods have been paid for (if you are following our mantra of “nothing goes until it has been paid”) and usually not until the goods are loaded on the agreed mode of transport. Once accepted (depending on your negotiations) your customers can make payment to you, raise a formal purchase order, and/or plan the logistics. A great tool that, when used correctly, will overcome most commercial misunderstandings. The proforma invoice collates all your negotiations into the one place and ensures everyone is clear on the terms of the sale.
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