Proforma Invoice Hide Mandatory Field For Free

A proforma invoice is a non-official receipt that's given to a committed buyer before products or services are supplied.A more accurate description of a proforma invoice is a quote, or 'good faith' agreement between the seller and the customer, used to avoid unexpected charges down the line.

What should you include on an invoice?Your business name and contact information.The term 'invoice' and an invoice number.Name and address of the client you're invoicing.Invoice issue date and payment due date.Date the services or products were provided (supply date)More items...

As a pro forma invoice does not act as an official tax invoice in the eyes of the tax office, it negates any obligation to report the transaction for either GST or income tax purposes until the issuer is certain of the goods being delivered and paid for.

As a proforma invoice is not a legally binding document, or the official invoice used for accounting, they do not need to be cancelled. Similarly to a quotation document, if the sale does not go ahead, no action is required to edit or cancel the proforma invoice.

Like a regular invoice, proforma invoices should include contact details, a date of issue, a description of the goods or services provided, the total amount due, and any VAT. They might also include payment terms such as which methods of payment you accept and when payment is expected.

The Proforma invoice will include the seller's bank details so that the buyer can arrange payments as required.

A pro forma invoice is not an original/tax invoice. Therefore, it does not have any legal validity. Hence it does not legally bind either party in a supply transaction.