The difference between an invoice and a proforma invoice can be confusing, but it is important to understand the distinction. An invoice is a document that is sent to a customer after goods or services have been delivered. It includes the customer’s name, address, and contact information, as well as the date of the invoice, the invoice number, and the terms of payment. A proforma invoice, on the other hand, is a document that is sent to a customer before goods or services have been delivered. It includes the same information as an invoice, but it also includes a statement that the invoice is not a final invoice and that the customer is not obligated to pay until the goods or services have been delivered.
Proforma invoices are often used in international trade. They allow the customer to see the cost of the goods or services before they are ordered, and they can also be used to obtain a letter of credit from a bank. Invoices, on the other hand, are used to collect payment for goods or services that have already been delivered.
