Proforma Invoice Share For Free

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.

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.

A proforma invoice is a preliminary sales document issued by a seller to a buyer before the goods or services are produced or delivered.The literal definition of proforma is as a matter of form. This means that even though a proforma invoice has no fiscal value, it still exists for the sake of formality.

A proforma invoice is usually sent when a customer has committed to a purchase but can't be sent an official invoice because the final details haven't been confirmed. On the other hand, a quote is sent to a customer who has made an enquiry but wants more information before making a commitment to buy anything.

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.

However, the difference is, the origin: the seller prepares and sends a proforma invoice to the buyer. When it comes to a purchase order, it's the buyer (and its accounts payable department) who issues and sends it to the seller and uses the document for invoice matching when disbursing payment.

The simple answer is no, a payment can't be made on a proforma invoice. However, in order to understand why, the difference between proforma invoices and standard invoices must be understood.