Proforma Invoice Delete Line For Free

Providing as precise an estimate as possible, the goal of a proforma invoice is to avoid exposing your customer to any unanticipated charges or duties. Much like an invoice, a proforma invoice is a binding commercial agreement.

Businesses use pro forma invoices when providing their customers with an estimate or quote for goods or services, and they serve to advise your customers of the final costs of a sales transaction. Pro forma invoices, when used, are always sent to your customers before goods and services are delivered.

The pro-forma invoice is issued before sales takes place. Once after receiving pro-forma invoice from the supplier, the buyer sends a purchase order or opens a letter of credit to the supplier.

One way of creating a proforma invoice is to adjust an invoice template in Word or Excel to become a proforma invoice template by removing the invoice number and changing the title of the document. You then have to save the proforma invoice, attach it to an email, and manually convert it to a finalised invoice.

Proforma invoices are not legally binding and are not counted as official sales in your accounting department. Traditional invoices confirm a purchase or sale, whereas proforma invoices are just a way to establish the terms of the sale.

Can you pay on a proforma invoice? A proforma invoice is not a legal document. That means the customer is not legally obliged to pay the amount listed. Instead, you must issue a commercial invoice with an invoice number to request payment.

Only after a proforma invoice is converted to a true invoice will its value be registered in your accounts; this is because, until that point, there is no guarantee that the customer will agree to your terms.