Proforma Invoice Vs Commercial Invoice


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 a 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.  


 Difference between a purchase order and an invoice might interest you too.




Importance of online invoicing software for generating pro forma 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.





Veronika Tondon is a business enthusiast with extensive experience in Invoicing & Payment Process. She has 6+ years of experience in Invoicera, the leading cloud-based invoicing solution as Invoicing Consultant. Sound knowledge in business process execution, offers end to end solutions for complete automation of business processes and AR/AP processes. Contact Veronica for your invoicing requirement.

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