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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.

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.

A proforma invoice (or a pro forma invoice, preliminary invoice, or simply proforma) is a preliminary bill of sale sent to a client before work is completed. Unlike a typical invoice, it's a commitment to goods or services that haven't yet been delivered.

A pro forma is used before goods are shipped and no payment is required. A commercial invoice is sent after the goods have been delivered and now, it is time to pay.

Is a proforma invoice legally binding? Although a proforma includes much, if not all, of the same information that appears on a final sales invoice, it doesn't carry the same legal weight and shouldn't be used for accounting purposes, or as a binding agreement.

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.

What is the format of the proforma invoice? Document title as Proforma Invoice. Billing and shipping address of the buyer. Company name and address of the seller. Transaction terms and payment details. Invoice creation and expiration dates. Description of the goods/services to be provided.

Although it is not final, a pro forma invoice should give the buyer a clear understanding of the terms of sale, including the price, date of delivery, and any additional fees. It is less official than a formal/final invoice, which is typically issued at the time of delivery.