Proforma Invoice

[Former Member]

Hai,

1. What is proforma Invoice? In which situations we use that?

What configuration settings shall I make for a Proforma Invoice?

How to convert the proforma invoice to a commercial invoice?

Regards,

Keyur. p

[Former Member]

Hi Keyur ,

The pro forma invoice includes:

A quotation of cost to the buyer

1.Quantity and description of the product

2.Price

3.Terms of sale (Incoterms)

4.Terms of payment

5.Length of time the export price is valid

6.Expiration date for the letter of credit

7.Length of time needed for shipping

postings are blocked for this ; you can create it against an order or delivery

Mostly for foriegn trade this is used .The pro forma invoice is not the actual billing document (invoice) the exporter sends to the customer, but it contains the same data. Exporters need to create a pro forma invoice to provide the same messaging capabilities for the document’s data as an actual billing document provides

Use t-code VTFA and VOFA to set according to your scenario .(the topic is debatable ).

Commercial invoice

A legal document containing information on a foreign trade transaction for a customer. The commercial invoice includes information on the contracted goods, quantities, unit prices, amounts, trading terms, forms of payment, and other details pertaining to the safe transport of goods to the importer’s country.

The commercial invoice is the basis of all export procedures and customs declarations during export and import customs clearing. It is also a major document certifying valid sales when negotiating with financial institutions, and it serves as a reference when applying for insurance. The exporter may issue multiple copies of the commercial invoice depending on the requirements of a particular export transaction.

hope this clears the difference and use of the documents.

regards

kp