A proforma invoice is one of the essential legal documents that are necessary for a particular commercial transaction. This document is used by the purchasers to prepare the price & sale terms. Proforma invoices come with the essential function of indicating the quotation. A standard proforma invoice represents the details of the transport fees, items purchased, shipping weight and delivery time. This document is widely used in both air and sea freight shipping services in Sydney. In this article, we are going to discuss major facts about the proforma invoice.
Key features of proforma invoice
A proforma invoice comes with several features and characteristics. Some of the features include:
Price commitment: The seller will commit to delivering items or cargo to the buyer for a price.
Proforma invoice payment: It covers the currency types used to make payments. The credit period is provided to the buyer and the extra costs are related to the legal work, documentation and inspection.
Shipment mode: It mainly lists the shipment method. It could be through sea, air and land.
Expected delivery time: It stands for the estimated time which is important to deliver the goods to the buyer.
Requirements for Proforma Invoice
A general proforma invoice must have the following specifications and details:
- Address of the supplier or seller
- Address of the prospective buyer or purchaser
- An invoice number
- Issue date of the proforma invoice
- Specifications of the goods (dimensions, weight and total number of units)
- Service details (itemised fees or charges)
- Bill of Lading
- The validity period of the proforma invoice
- Agreed or proposed terms of sale
- Agreed or proposed payment terms
- Certifications required
- Permissions required
- Proposed or estimated time for delivery
- Mode of shipment
- Signature by an authority from the supplier’s or seller’s organisation
Difference between proforma & tax invoice
A proforma invoice and tax invoice both are different. A proforma invoice is a quotation or purchaser estimation and it is mainly prepared as per the requirement of the seller. The proforma bill will represent the details of the goods purchased, delivery time, transport fees as well as shipping weight. It also shows the transaction record for both the proforma parties i.e the buyer and seller. Whereas, the tax invoice is mainly issued when the items are purchased finally by a buyer and is conveyed that the payment is due.
The necessity for a proforma invoice is huge. However, this is not the final invoice. This is generated as per the outlined T&C agreed upon between the importer and the exporter.
