A pro forma invoice should include most of the elements of a true invoice, including:
- The date the invoice was issued.
- The contact details of both the buyer and the seller.
- Product or service details and the agreed prices for them.
- Taxes.
- Shipping costs, if any.
- The total.
- Any terms of credit that can be expected.
What is difference between proforma invoice and invoice?
Proforma invoice is a kind of quotation, containing a commitment by the seller to supply goods at the specified rate and date. Conversely, Invoice is a sort of bill, displaying the amount due to the buyer. Proforma invoice is used for the creation of sales, whereas invoice is used for confirmation of sale.
Who make proforma invoice?
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.
