The proforma invoice is a commercial document with informative value ! often assimilated to a quote. It is used to present a precise estimate of the products or services that a supplier offers to a customer. Unlike a classic invoice! it does not constitute accounting proof of a transaction carried out and does not legally bind the parties until it is validated by an order or a contract.
What is the difference between a final invoice and a proforma invoice?
The proforma invoice and the final invoice have distinct functions. Here are the main differences:
Book value : a proforma invoice has no book value! while a final invoice proforma invoice must be recorded in the company’s accounts;
Legal value : unlike a final invoice which constitutes legal proof of the transaction! a proforma invoice does not bind either party until it is followed by formal acceptance;
The main function : the proforma invoice is above all an informative document band data which serves to detail a commercial offer! while the final invoice officially formalizes a sale and entails an obligation to pay;
Payment : A final invoice implies payment! while a proforma invoice does not trigger any immediate payment.
Before finalizing a sale : it allows you to give the customer a detailed view of the offer without them committing immediately;
In an export context : this document is often required by customs authorities to estimate the duties and taxes to be paid;
When applying for financing : financial institutions or credit organizations tongliao phone number list may require a proforma invoice before granting a loan or credit;
As part of a call for tenders : some companies request a proforma invoice to evaluate a price proposal before selecting a service provider.
What are the mandatory details on the proforma invoice?
Because the proforma invoice has no accounting or tax value! it does not facebook lookalike audience have to contain any ” mandatory information ” per se. However! certain information remains essential:
General information
The title “Pro forma invoice” must be clearly indicated;
A unique proforma invoice number;
The date the document was issued.
Unlike a classic invoice ! the proforma invoice does not have to display a number. This is mainly used to facilitate tracking.
Information on the parties concerned
The seller’s full contact details and their intra-community VAT number if they are liable. To find out more about the intra -community VAT number ! click here ;
The name and address of the recipient customer.
Are you a sole trader (or micro-entrepreneur)? Then we invite you to add the words “Sole Trader” to your proforma invoice template.