How Proforma Invoice Is Different From Standard Invoice

1. How Proforma Invoice Is Different From Standard Invoice Users are always contacting the company and inquiring about the invoices which would say proforma. This can be taken as an unnecessary extra word but actually, this is a very specific type of invoice which has been used for a different purpose. In short, this cannot be considered as the finalized invoice. In this blog, you will find the difference between the standard and the proforma invoice. If your invoice would be saving proforma then you have to send the finalize invoice with Invoice Office Software. Proforma invoices are considered as the draft invoice which is usually issued before the final invoice for the selling products. With a proforma invoice, you would get an estimate of the expense for the product. As the proforma invoice template is not the final one so it does not have any legal or fiscal value. The proforma invoice is also not recorded in the accounts. Customers are not obliged to pay anything until they receive the final invoice. VAT can also not be claimed when the invoice is Proforma. Similar to the final invoice the proforma invoice would contain much important information like customer details, the good details, and the service details which have been provided by your company. In the proforma invoice, you would not be able to see any of the invoice numbers which have been assigned to it. This invoice has been clearly labeled as the proforma invoice instead of just an invoice. Use of Proforma Invoice If you are issuing the proforma invoice then you have to label it clearly. There are various circumstances in which issuing the proforma invoice is much more appropriate. It is always recommended to send the proforma invoice if the deal is not finalizing. For example, the proforma invoice from the Invoice Office mostly contains the details about the shipment of the goods which have been provided to the customs officials. There is information about the products which are to be shipped if the deal gets finalized. When there are changes that the details of sale might change then in this case also you can issue the proforma invoice. The final Invoice is issued when the seller will confirm the specific price for the goods and services which have been committed. Therefore, you can issue the proforma invoice when the customer is not confirming the sale and is not fully committed to the final price. If you don’t want to issue the finalized invoice, then your invoice must be labeled as a proforma invoice. This will stop recognizing the invoice as an official and true document of sale. When you are accidentally sending the proforma invoice instead of the final invoice then you need to make sure that you issue the final invoice as soon as possible.

2. Proforma invoice with Invoice Office Software If you are also looking for a proforma invoice template, then with Invoice Office, it is very easy to create and convert the proforma invoice to Finalize Invoice. For more info on this, you can visit the Invoice Office.