![]() ![]() FormatĪ proforma invoice and a commercial invoice have similar elements. It’s important to note that a seller can’t demand payment based on a proforma invoice. It also includes expected delivery dates, and payment terms. The document contains estimations of the price and quantity of products. Without it, freight forwarders can’t export goods.Ī seller uses a proforma invoice to create a quote based on customer inquiries. A commercial invoice needs to go with every international sale. Each product has a description and payment details. It displays details about the exact quantity of the purchased products. Here’s an overview of the key differences: UseĪ commercial invoice contains essential information about the products a buyer purchases. Proforma vs Commercial Invoice: Key DifferencesĪ commercial invoice and a proforma invoice have many differences. They may also incorporate bills of lading, and relevant details about the destination. Some commercial invoices state information about the shipping company. But, in this case, the stated quantity and costs of the product isn’t an estimate, but a representation of the actual quantity shipped.Ī commercial invoice also contains details about the final cost, delivery date, and product terms. In this invoice, you can also find info about the products the seller shipped. It also has details about the method and type of shipment, the reference number, and the date. Just like a proforma invoice, a commercial (final) invoice contains information about the seller and the buyer. That’s probably why many people confuse these two terms. Key Elements of a Commercial InvoiceĬommercial and proforma invoices have similar key elements. They specify the quantity of the product and payment terms. Commercial invoices are key to export and import procedures. This document contains accurate details and allows your company to get paid. You send the final invoice after both you and the buyer have agreed on the process. In this case, there’s never a projected quantity or an estimation of the total price or shipping costs. Without a commercial invoice, international trade wouldn’t be possible.Ī commercial invoice contains precise and detailed information about the shipment. The information from a commercial invoice is valuable to the following entities: You use these invoices for international trade. ![]() This is the primary shipping document that customs worldwide use for valuation and commodity control. ![]() What Is a Commercial Invoice?Ī commercial invoice, or a final invoice, is a document that you send to the buyer after shipping or delivering products. FreshBooks also offers a free proforma invoice template that you can use and customize to suit your needs. Best of all, you can send the proforma invoice directly from FreshBooks, thus saving time. You can add your company’s logo and include the necessary details to ensure your client has all the information. Some invoices can also include bank information or projected quantities if you don’t have the exact number.Ĭreating a proforma invoice can be much easier if you use online invoicing software like FreshBooks. Every proforma invoice also needs to contain details about the port of loading and discharge.įinally, proforma invoices should also contain info about the payment process. You should note the exact quantity and quality and provide a clear description of the products or services.ĭon’t forget to include the shipment method, reference number, and estimated time of delivery. You could also add the recipient’s name if you know it.Ī proforma invoice also needs to include detailed information about the shipment. This also includes the company name, address, and phone number. Then, the invoice needs to contain details about the buyer. If you want, you can also include other relevant information like your email address or working hours. First, they need to include information about your company, including the name, address, and phone number. Key Elements of a Proforma InvoiceĪlthough they’re not actual invoices that confirm a sale, proforma invoices need to contain certain elements. ![]() After this period, the proforma invoice expires, and you will need to create a new one to proceed. This allows customers to make their decision and proceed with the purchase or withdraw. Proforma invoices are valid for a certain period. You may also need a proforma invoice if your country has strict currency exchange rate regulations. A buyer may need a proforma invoice if they need proof to set up a letter of credit to pay for the products or secure financing for the purchase. ![]()
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