Invoice Draft is basically a stage prior to a final Invoice, or in other words, a preparation step before the invoice is finalized and sent to the client. It can serve as a pro-forma invoice.

Some common invoice payment methods include paying by cash or cheque, credit or debit card, bank or wire transfer, online payment, and automated bill payment. Your business can avoid payment delays by following best practices such as invoice review and scheduling, or using software to automate the process.

A draft invoice is exactly how it sounds, a draft. It's an invoice template that's saved for you to either make future modifications or to convert into a proforma or full invoice to send to the customer. A draft invoice isn't an official document that can be sent to a customer.

Ideally, you want the proforma invoice to be as close to the commercial invoice as possible. It is a voluntary document, and it is the preferred method in the exporting business. It's good form to include a proforma invoice whether or not it is requested. It is a blueprint for the entire export process.

A final sales invoice (also called a commercial invoice, final invoice, or official invoice) is a business instrument that states the total amount due and requests payment. A proforma invoice is a declaration by the seller to provide products or services in the future and isn't a legally binding agreement.

While you can agree longer periods if you wish, and the other party agrees, by default, the payment is late 30 days after either the invoice is received by the client or customer, or the goods and services have been delivered (if later than the invoice date).

Proforma invoices are essentially 'draft invoices', meaning they don't have the same legal importance as finalised invoices. Therefore, this means that: A customer is not legally required to pay the amount on a proforma invoice. Proforma invoices cannot be used to reclaim VAT.