What is a Proforma Invoice?
A proforma invoice is a preliminary document sent to a buyer before the final delivery of goods or services. It acts as a good-faith estimate or binding quote, outlining what the final commercial invoice will look like once the order is executed.
Is it a payment request? No. It is an information document outlining proposed costs.
Is it an accounting record? No. It does not go into your accounts receivable ledger.
Key Use Case: Sent so buyers can secure internal purchase order (PO) approvals, open letters of credit, or obtain import licenses before funds transfer.
What is a Commercial Invoice?
A commercial invoice is the official request for payment issued after terms are finalized or goods are dispatched. In international trade, it is a legally binding document used by customs authorities to calculate tariffs, duties, and import taxes.
Is it a payment request? Yes.
Is it an accounting record? Yes. It creates a formal financial liability in accounting systems.
Key Use Case: Final billing, tax filing, revenue tracking, and clearing customs shipments.
Quick Comparison Guide
FeatureProforma InvoiceCommercial InvoicePurposeEstimate / Pre-shipment noticeOfficial payment request & customs declarationLegal StatusNon-binding estimateLegally binding accounting documentTimingBefore production/shipmentAfter order execution or during shipmentCustoms Duty PurposeUsed for preliminary valuationUsed to calculate actual taxes and tariffs
Generate Clean Documentation Easily
Whether you need to issue a preliminary quote or send a final request for payment, your documents should look professional, well-structured, and clear.
Draft a clean estimate or formal statement right away using the Online Invoice Editor.