A pro forma invoice provides an estimate for the final amount of an order. A commercial invoice shows the final amount that should be paid. Pro forma invoices are used in importing and exporting to declare the value of goods for customs. Commercial invoices are used in accounting, to pay bills.

Is a commercial invoice the same as a proforma invoice?

A pro forma is used before goods are shipped and no payment is required. A commercial invoice is sent after the goods have been delivered and now, it is time to pay.

Can I use a proforma invoice as a commercial invoice?

Proforma Invoices are usually used for customs purposes only, often where unsold goods are being shipped. Commercial Invoices are usually used where sold goods are being shipped.

What is the difference between a commercial invoice and a sales invoice?

A commercial invoice is a document created for international shipments containing important information about the export. It includes extra details than regular sales invoices to calculate tariffs and confirm the shipment is legal. Commercial invoices are also used to create a customs declaration.

When should a commercial invoice be issued?

The Commercial Invoice

When the goods are ready to ship, the seller issues a commercial invoice. In addition to listing the amount owed by the buyer to the seller, including when and how payment must be made, the commercial invoice plays an important role in the export process.

What is a pro forma invoice?

A proforma invoice is a preliminary bill or estimated invoice which is used to request payment from the committed buyer for goods or services before they are supplied. A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction.

Who receives commercial invoice?

The commercial invoice is one of the most important documents in international trade and ocean freight shipping. It is a legal document issued by the seller (exporter) to the buyer (importer) in an international transaction and serves as a contract and a proof of sale between the buyer and seller.

What is meant by commercial invoice?

In simple words, a commercial invoice is an export document that serves as legal evidence of a sale transaction between the buyer and the seller. It is mainly used for clearance purposes with regard to customs and helps in the determination and assessment of duties and taxes payable.

What is a commercial invoice in shipping?

A commercial invoice is a required document for the export and import clearance process. In the buyer’s country, it is the document that is used by their customs officials to assess import duties and taxes.

Should you pay a proforma invoice?

Proforma invoices are essentially ‘draft invoices’, meaning they don’t have the same legal importance as finalised invoices. Therefore, this means that: A customer is not legally required to pay the amount on a proforma invoice.