The invoice and the pro forma invoice are two different types of documents, let's take a closer look at when each is used and identify the main differences.
Invoice
- The invoice is an official and legally binding document.
- It is drawn up and issued after goods or services have been supplied or performed.
- It includes all the details of the business transaction, such as a description of the goods or services, quantity, unit prices, totals, taxes, and other relevant data.
- Used for official financial record keeping and as evidence of the business transaction.
Invoice form
- A pro forma invoice is not an officially binding document and has no legal force.
- It is issued prior to the actual delivery of the goods or services, usually as a preliminary notification or estimate of costs.
- Includes the same details as an invoice, but with the specific notation that it is pro forma, and may include more detailed descriptions of the goods or services.
- Used as an advance notice or preliminary statement of the terms of a commercial transaction. It is not binding for payment and is not used for tax or official purposes.
The main difference between an invoice and a pro forma invoice is that an invoice is a formal and legally binding document that is issued after a service has been performed or a good has been delivered, whereas a pro forma invoice is a pre-issued document that provides information about the impending delivery of the good or service but is not legally binding for payment.
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