Anyone knows when should Proforma invoice be used?

rough pricing agreed by buyer n seller

Fake invoice

pre-invoice

means if u accept it there will be no more pricing changes after goods received

The proforma serves as a notice to the client so that they can check the item on your invoice if it is correct or if they agree with it.

Like when u go to restaurant, they ask u check the food list see if correct or not.

It is not an actual invoice and should not serves as one too.

A proforma invoice is a preliminary bill of sale that is sent to the client before the work is completed. It's a commitment to goods or services that have yet to be delivered. It lists the work to be completed, the quantity and the price you're charging for the products or services.

Biasa angmoh company do this..

This post has been edited by wohoo: May 3 2021, 04:42 PM

in short, its pre-invoice. like u wan them prepare payment but hvnt got the actual invoice, then u issue this

Thanks for the explanation. But what is the difference between proforma invoice and quotation? It sounds almost like the same thing to me.

By the way. I'm asking because I'm making a product sample to my client (for their inspection) which they havent confirm yet, and for that product I need to charge my client, so I was a little confused as which method should I bill them?

explanation for stupid pipel (laymans)

"ini dlm kertas saya sudah list out, harga belum confirm... u cuba tengok

u ok with the list, u email me ya"

Not sure about others... But I've always assume proforma invoice and quotation are the same.

Pro-forma invoice need to pay first before finish the project.

No la, it is for client company to capture amount first into their account. (Some company need 3~6 months to approve funds from management)

After that you need to give them official invoice to get payment.

This post has been edited by Aftermaths: May 3 2021, 04:57 PM

Its a "you don't cb/keluar pattern" document.

difference comes in when you import/export
customs typically tak layan quotation but accept performa invoice or sometimes also called tax invoice in lieu of actual invoice for declaration and duty calculations


This post has been edited by bumpo: May 3 2021, 04:58 PM

pahaman aku... its practically the same....yet completely different with quotation

i read it as PERFORMAX

quotation - seller proposed price, buyer have yet accepted.
PI - buyer agreed price and seller want partial/full payment to proceed any work. This usually for first time buyer or upon financial doubt of buyer

Use it for TT to avoid AMLA

To bill your client for the samples and services rendered, use invoice.

Before you start work/delivery the samples, use proforma invoice to them so client know they will be charge and you know they won't be surprised (price or term etc) when you invoice them later.

SinzChan shitvex feveret

Well..I maybe wrong..

Quotation is quotation. Quotation for list item 1 to 10 which one u want to buy.

Proforma invoice is unofficial invoice. Eg. Sometimes company cannot issue you the official invoice yet because the part yet to be delivered. But u need an "invoice" for declaration or for finance to book first. So will issue proforma invoice.

Syiok sendiri punya invoice

ikr

pro-forma is more like draft, still can change the info, ie. price change on actual invoice
quotation is more formal/official, mostly set in stone once accepted (subject to T&C or small print)

edit: this is what my company do, some other company quotation and invoice can be used interchangeably, pro-forma is just quotation in invoice format

This post has been edited by jmas: May 3 2021, 06:39 PM

i usually kena proforma dengan hosting/domain provider. Let say my domain lease expire on 1 May they will issue proforma invoice one or two months before that. Basically in my layman understanding:

1. Quotation - Just a price list for product or service you offered. Usually no commitment.

2. Proforma - Early IOU for service not yet rendered but confirmed.

3. Invoice - IOU after service or product delivered.

Quotation = informing the price, still can negotiate (like restaurant menu)

Proforma invoice = final confirmation, before payment (like you ask for bill, before paying at restaurant)

Tax/Commercial invoice = receipt, after payment

Never hear before

When your client ask for the price of a list of items, you will show him the quotation that indicates your price for all of the items.

After your client agrees with the quotation, the business will takes place.

When the business is completed or partially completed, you may issue him a proforma to tell him that the items that have been completed with the price indicated. Your client will goes through the proforma and shall him agree with it, you will then need to issue him the invoice for bill collection. Shall him disagrees with the price, both of you may discuss further to get an agreement.

Once your client has made the duly payment, you may then issue him a statement of payment aka receipt.

if cod it is for them to issue payment

Quotation (issued by seller) -> Purchase Order (issued by buyer) -> Proforma Invoice / Invoice (issued by seller)