Understand when to use a proforma invoice and when to issue a final invoice.
What Is a Proforma Invoice?
A proforma invoice is a preliminary document sent before goods or services are delivered. It outlines estimated costs and terms—not a payment request.
- Used for price quotes and customs
- Shows estimated amounts
- Not legally binding
- Not a request for payment
What Is an Invoice?
An invoice is an official request for payment after delivery of goods/services.
- Includes invoice number and due date
- Shows final totals and taxes
- Legally binding & used for accounting
- Triggers the payment process
Key Differences (Quick Table)
| Feature | Proforma Invoice | Invoice |
|---|---|---|
| Payment Required | No | Yes |
| Legally Binding | No | Yes |
| Amounts | Estimated | Final |
| When Used | Before shipping | After delivery |
Which One Should You Use?
Use a Proforma Invoice for quotes and customs; use an Invoice to request payment and record the transaction.
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