Sellers use pro forma invoices to educate buyers on expected costs and avoid any delays when products transfer through international customs. Here are some categories that highlight the differences and similarities between these two invoice types: Uses While both invoice formats educate buyers on product and shipment costs, there are a few differences between them. Related: What Is an Invoice? Definition and Purpose Pro forma invoice vs. This invoice also includes and reports the exact number of items a company ships to a customer. Sellers issue a commercial invoice after they provide a customer's goods or services. Read more: Pro Forma Invoice: Definition, Examples and FAQ What is a commercial invoice?Ī commercial invoice is a document that informs buyers of actual production and delivery costs. Some projected expenses pro forma invoices include are: Sellers issue a pro forma invoice before producing and delivering final goods so a buyer can make an informed choice about completing an order with the company. This invoice confirms a buyer's shipment details and lists expected costs, such as item and shipping costs. What is a pro forma invoice?Ī pro forma invoice is a document that informs buyers of calculated expenses. In this article, we explore what pro forma and commercial invoices are, review several differences and similarities between them and discuss a few frequently asked questions about these invoices. Understanding the differences between these two invoices can help your company use these documents effectively. Companies often use pro forma and commercial invoices to expedite their sales processes and improve their international shipment processes. Invoices are essential documents that help companies track expenditures and budgets.
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