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Why payments cannot be made on proforma invoices For starters, a proforma invoice is not a legal document. This means that the customer has no legal obligation to pay the amount on the proforma invoice.

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.Normally purchase order is prepared by buyer on the basis of pro forma invoice sent by seller to buyer.

A proforma is a request for payment, usually to a new customer, generally for goods which will be provided once payment has been received.

Note: only after a pro forma invoice is converted into a true invoice will its value be registered in your account. This is because, until that point, there is no guarantee the customer will agree to your terms.

A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information, such as the shipping weight and transport charges.

A proforma invoice shouldn't include an invoice number, and it should say 'proforma invoice' instead of just 'invoice'.Customers aren't required to pay the amount listed on a proforma invoice. The total amount due shouldn't be recorded under a customer's accounts payable or a supplier's accounts receivable.

The commercial invoice is more like the legal document of the actual sale. This document is used to record the AR for the seller and AP for the buyer. In some countries, a proforma invoice is accepted in lieu of commercial invoice to process import customs procedures to release cargo out of the country.