![]() In comparison, a commercial invoice is used by customs to assess the duties, taxes, and other import fees associated with the sale. This helps them to more efficiently prepare to receive the shipment. For example, buyers can use a proforma invoice to demonstrate to the government why they need an import permit. However, the main differences are in how they are used.īuyers use a proforma invoice to overcome import restrictions that could affect the sale. Proforma invoices and commercial invoices are both export documents commonly found in international trade. In the accounts payable process, a proforma invoice is used to create a sale, while an official invoice confirms the sale.Ī proforma invoice typically includes all of the information found in a standard invoice, but it should be clearly marked as “proforma.” To avoid duplicate payments, consider including a reference to the proforma invoice number on the standard invoice. In contrast, a standard or official invoice is recorded in your accounts payable or accounts receivable to be used for accounting purposes in case of an audit. While an invoice is official and legally binding, a proforma invoice simply sets expectations for both the buyer and seller. With this good faith estimate, a buyer can then decide whether or not to continue with the sale. The purpose of a proforma invoice is to provide the final details of an order to the buyer before they commit to a purchase. That means you shouldn’t record the total amount due under your accounts receivable or use the proforma invoice to reclaim value-added tax (VAT). In that sense, a proforma invoice is more like a sales quote than a final sales invoice. However, a proforma invoice is not legally binding because the terms of sale are still subject to change. The FinTalk Blog Strategy and trends in paymentsĪ proforma invoice and a final sales invoice share a lot of the same information.Customer Stories See how we transform finance operations. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |