Thảo luận Difference between ‘Pro forma Invoice’ and ‘Commercial Invoice’ in International Trading

Donald nói:

Hi all,

One of the common questions arises in a business terms course is the ‘difference between pro forma invoice and invoice’. ‘
- What is pro forma invoice ?
- What is commercial invoice ?
- What is the difference between commercial invoice and pro forma invoice ?

Let us discuss – ‘when the pro-forma invoice is issued’ and ‘when invoice is issued’.

Once after agreeing the terms of contract of sale, the buyer has to issue a purchase order or L/C . Just before this process, the seller has to send a ‘pro-forma invoice’ to buyer, mentioning complete details of agreement of sale. Normally, purchase or L/C is opened on the basis of this pro-forma invoice sent by the seller.

So, we can treat pro-forma invoice as a document of commitment to sell the goods to the buyer as per the terms and conditions agreed between both in person, over telephone, by fax, email or any other mode of communication. In other words, we can treat the pro-forma invoice as a ‘confirmed purchase order’ from the seller, although the official purchase order has to be issued by the buyer. The pro-forma invoice is issued before sales takes place.

Once after receiving pro-forma invoice from the supplier, the buyer sends a purchase or opens L/C to the supplier. As per agreed date of shipment, the seller arranges to ship the goods. The seller issues commercial invoice at this point of time. Invoice is a prime document of sale in any business. We can call as commercial invoice. Invoice and commercial invoice is same. Commercial Invoice is used to record ‘accounts receivable’ for the seller and accounts payable for the buyer. The content of commercial invoice is almost same as pro-forma invoice. However, the final sale price may vary with the pro-forma invoice, as pro-forma invoice is issued prior to actual sale takes place.
Do pro-forma invoice accepts in Viet Nam for import customs clearance?

Nhấn để mở rộng...

Donald nói:

Hi all,

One of the common questions arises in a business terms course is the ‘difference between pro forma invoice and invoice’. ‘
- What is pro forma invoice ?
- What is commercial invoice ?
- What is the difference between commercial invoice and pro forma invoice ?

Let us discuss – ‘when the pro-forma invoice is issued’ and ‘when invoice is issued’.

Once after agreeing the terms of contract of sale, the buyer has to issue a purchase order or L/C . Just before this process, the seller has to send a ‘pro-forma invoice’ to buyer, mentioning complete details of agreement of sale. Normally, purchase or L/C is opened on the basis of this pro-forma invoice sent by the seller.

So, we can treat pro-forma invoice as a document of commitment to sell the goods to the buyer as per the terms and conditions agreed between both in person, over telephone, by fax, email or any other mode of communication. In other words, we can treat the pro-forma invoice as a ‘confirmed purchase order’ from the seller, although the official purchase order has to be issued by the buyer. The pro-forma invoice is issued before sales takes place.

Once after receiving pro-forma invoice from the supplier, the buyer sends a purchase or opens L/C to the supplier. As per agreed date of shipment, the seller arranges to ship the goods. The seller issues commercial invoice at this point of time. Invoice is a prime document of sale in any business. We can call as commercial invoice. Invoice and commercial invoice is same. Commercial Invoice is used to record ‘accounts receivable’ for the seller and accounts payable for the buyer. The content of commercial invoice is almost same as pro-forma invoice. However, the final sale price may vary with the pro-forma invoice, as pro-forma invoice is issued prior to actual sale takes place.
Do pro-forma invoice accepts in Viet Nam for import customs clearance?

Nhấn để mở rộng...

Manh nói:

Are you american ?

Nhấn để mở rộng...