Articles on: Sales

Proforma Invoice

Proforma Invoice

A proforma invoice is a preliminary bill of sale sent to buyers before the actual delivery of goods or services. It serves as a pre-invoice document that outlines the details of a potential transaction. Here are its key aspects:

A proforma invoice typically includes details such as a description of the goods or services, their quantity, prices, any applicable taxes or fees, payment terms, shipping details, and other relevant terms and conditions.

It functions as a quotation or estimate, providing the buyer with an approximate cost of the goods or services they intend to purchase.

Unlike a commercial invoice, a proforma invoice is not a demand for payment or a legally binding document. It serves as a precursor to the actual invoice and sets the groundwork for the transaction.

It can act as a confirmation of an order placed by the buyer, ensuring that both parties agree on the terms of the transaction before the goods are shipped or services are rendered.

Proforma invoices assist in planning for both the buyer and seller, allowing them to prepare for the upcoming transaction. They also serve as a record of the transaction details for future reference.

Businesses commonly use proforma invoices in various industries, especially in international trade, where they help facilitate smooth transactions by providing a detailed overview of the expected transaction. They're a helpful tool for both buyers and sellers to establish clarity and understanding before finalizing a deal.

How to generate Proforma Invoice?

Generating Proforma Invoice

Navigation: POS Admin → Sales → Estimate

Click New Estimate

Select the Customer, Location, Estimate Date and enter the Reference Number.
Enter the Billing and Shipping address of sender and receiver.
Add items for which estimate is required and their respective quantity
Click Save.

Estimate/Proforma invoice has been generated you can download it as pdf.
We have option to edit if any changes needed in the estimate and also an provision to convert it as invoice (sale).

Payment and Invoice Generation

Once the customer has finalized and pays the value of the estimate, click Convert to Invoice
Select the Payment Method and Order Date.
Click Create Invoice

We have generated the final invoice for the estimate.

Updated on: 11/12/2023

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