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 What is Proforma Invoice?

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ju146
post May 3 2021, 05:04 PM

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Syiok sendiri punya invoice
SinzChan
post May 3 2021, 06:31 PM

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QUOTE(hurricane21 @ May 3 2021, 05:01 PM)
SinzChan shitvex feveret
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ikr
jmas
post May 3 2021, 06:37 PM

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QUOTE(thequestioner @ May 3 2021, 04:45 PM)
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?
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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
ukapaka
post May 3 2021, 06:57 PM

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QUOTE(thequestioner @ May 3 2021, 04:45 PM)
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?
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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.
knumskul
post May 3 2021, 07:02 PM

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QUOTE(thequestioner @ May 3 2021, 04:45 PM)
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?
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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
kamfoo
post May 3 2021, 07:19 PM

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Never hear before
Princess_Alicia
post May 3 2021, 08:21 PM

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QUOTE(thequestioner @ May 3 2021, 04:45 PM)
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?
*
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.
bereev
post May 3 2021, 08:36 PM

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if cod it is for them to issue payment
kaliku
post May 3 2021, 09:40 PM

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

 

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