Proforma Invoice Vs Commercial Invoice-Know the

difference

​ he Invoices!
Do you know where the heart of an import-export business lies? T

There are two types of invoices commonly used by businesses in export and import:
Proforma Invoices & Commercial Invoices​. These are the two most important
documents.

Curious to know the responsibilities of each invoice for your business? Keep on
reading!

Proforma invoices and commercial invoices are key to business for import and export
businesses​. These are the two very important documents while dealing with clients.
Every time there is a business deal finalized the buyer has to send in purchase order to
the vendor. He could also open a letter of credit.

Before the buyer can issue a letter of credit to the vendor, he has to send a pro forma
invoice to the buyer. This document contains all the necessary information and terms
pertaining to the sale.
Proforma invoice is the document that shows a commitment on the part of the
seller to sell the goods according to the pre-decided terms and conditions.

Once a proforma invoice is issued to the buyer, he has to issue a​ ​purchase order​.
Once the seller receives the purchase order, he gets a confirmation to send the goods.
He now ships the goods to the buyer along with a commercial invoice. ​The commercial
invoice is more like the legal document of the actual sale.

This document is used to record the AR for the seller and AP for the buyer.

In some countries, a proforma invoice is accepted in lieu of commercial invoice to

process import customs procedures to release cargo out of the country.

Importance of Online Invoicing Software for generating Proforma and Commercial

invoices:

Choosing the right online invoicing software is crucial for managing your pro forma and
commercial invoices. Invoicera is a very useful​ online invoicing software which helps
with sending online proforma invoices and commercial invoices​. You can easily
use the estimates feature of Invoicera to send in your pro forma invoices. The complete
payment cycle of your import and export business can be easily managed using this
helpful tool.

Invoicera is one of the widely used online invoicing software and helps you easily
create, send and​ ​manage invoices and proforma invoices​. The cloud-based online
accounting software lets you easily manage invoices and cash flow. The mobile app
support lets you access the data anytime and anywhere conveniently.

Apart from just creating and sending invoices, it also helps in easy management of day
to day business activities. The inbuilt features of staff management and automated
currency conversions let you know about the currency profits and losses easily.|