Difference Between Proforma Invoice And Invoice

What is the difference between proforma invoice and invoice?

A proforma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery. It outlines the details of the goods or services, including the quantity, price, and terms of sale. However, it is not a legally binding document and does not require payment. On the other hand, an invoice is a legally binding document that sellers use to request payment from buyers after the goods or services have been provided. It includes the same details as a proforma invoice but serves as a formal demand for payment.

What are the types of difference between proforma invoice and invoice?

The main types of difference between a proforma invoice and an invoice are as follows: 1. Legally binding: A proforma invoice is not a legally binding document, while an invoice is a legally binding request for payment. 2. Payment due date: A proforma invoice does not include a payment due date, while an invoice specifies a deadline for payment. 3. Payment status: A proforma invoice does not indicate whether payment has been made or not, whereas an invoice clearly shows the payment status. 4. Legal obligation: A proforma invoice does not create any legal obligation, while an invoice establishes a legal obligation for the buyer to pay.

How to complete the difference between proforma invoice and invoice

To complete the difference between a proforma invoice and an invoice, follow these steps: 1. Include all necessary details: Make sure to include all relevant details such as the buyer's and seller's information, description of goods or services, quantity, price, and any applicable terms and conditions. 2. Specify payment terms: Clearly define the payment terms, including the due date, accepted payment methods, and any late payment penalties. 3. Provide contact information: Include contact information for both the buyer and seller, such as phone numbers and email addresses, to facilitate communication. 4. Ensure accuracy: Double-check all the information on the invoice for accuracy, including prices, quantities, and calculations. 5. Save and share: Save the completed invoice as a PDF document and share it with the buyer via email or any other appropriate method.

pdfFiller empowers users to create, edit, and share documents online. Offering unlimited fillable templates and powerful editing tools, pdfFiller is the only PDF editor users need to get their documents done.