Proforma/ Commercial invoice for EXCISE INVOICE

[Former Member]

Dear friends,

Excise Invoice is created with ref to a proforma Invoice as per the standard SAP. But SAP also allows to create excise invoice with referrnce to the Delivery doc and also Commercial Invoice.

Can some one help me to understand the pros of cons for referring proforma for Excise invoice creation and why not Commercial invoice so that we can avoid one step in between?

Thanks

Isaac

[Lakshmipathi · Accepted solution]

Yes it is not necessary that you have to create proforma for exports. You can create commercial invoice also which should have "Posting Block" in VOFA so that as and when the commercial invoice is generated, it will be blocked and accounting document will not be released in the background. Once the Bill of Lading is received, the said billing document can be released manually via VF02

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thanks friends for your inputs.

My understanding is there is no specific advantage by going with Proforma Invoice for Excise invoice creation in the case of Domestic sales unless there is any legal requirement.

1) In my case the client prepares one single document for delivery/Invoice which captures the Excise Invoice no and Gate pass aswell. So I can go with Delivery/Invoice/Excise invoice(No proforma) and the Excise Invoice itself will suffice for the Gatepass as well?

2) I think for Export sales its better to have a proforma?

Pl advice.

Thanks

Isaac

[Former Member · Accepted solution]

Hi Isaac,

> 1) In my case the client prepares one single document for delivery/Invoice which captures the Excise Invoice no and Gate pass aswell. So I can go with Delivery/Invoice/Excise invoice(No proforma) and the Excise Invoice itself will suffice for the Gatepass as well?

Yes, If invoice is there then there is no need of Proforma.... You can continue this....

> 2) I think for Export sales its better to have a proforma?

Again It depends on different criteria..... But its always favourable when u create Proforma in Scenarios like export.

Thanks

Raja

[Former Member · Accepted solution]

Hi

For domestic it is not required to create a proforma invoice unless if there is any requirement

For exports you can go with creating proforma invoice

AS in exports we have to send the invoice to customer which should be in customer currency so reating a proforma invoice will suffice

regards

[Former Member · Accepted solution]

Dear Raja,

Yes, I agree with you, to have Proforma in Scenarios like export.But when I am proposing this to the client, I am asked to give the pros and cons in going for additional process step (Creating a proforma invoice) as they feel its additional activity for them

Can you pl throw some light on this?

Thanks

Isaac

[Former Member · Accepted solution]

Isaac,

Read this about Advantages of Proforma :

http://impexadvisor.blogspot.com/

Thanks,

Raja

[Lakshmipathi · Accepted solution]

Creating a proforma invoice) as they feel 
    its additional activity for them

Yes definitely, this will be an additional work load on the end users and as I said earlier, it is not necessary that we should go for generating proforma for exports shipments.

In fact, there are cases where the exporters have to mail / fax the invoice once the goods are ready for shipment based on which, they will wire transfer in foreign currency to that extent. So in this case, once you generate delivery, you have to crete a proforma and mail it to importer. Once funds are transferred, cargo can be moved and commercial invoice can also be generated accordingly.

In case of LC shipments also, you (exporter) should be careful if they are going to generate proforma as well as commercial invoice. It is a normal practice that immediately the cargo is moved out from the manufacturing plant, a pre shipment information would be sent to importer. This means, if you fax or mail the proforma, it will have some number range and later on when you negotiate the commercial export documents like commercial invoice and packing list, these will have a different number range which the negotiating bankers will treat it as discrepancy and debit some charges towards LC discrepancy.

thanks

G. Lakshmipathi

[Former Member]

Like in Consignment Fill- Up , there is no Accounting Entries generated so created a Performa Invoice .As per the Performa Invoice , an Excise Invoice being generated which works as Excise Gate Pass- just to let the Material out of Factory Gates and no sales is booked.

But in Consignment Issue , Commercial Invoice being generated and then Excise Invoice generated.

Best Regards,

Ankur

[Former Member]

hi

Excise invoice can only be created with reference to Commercial Invoice or proforma Invoice only.

If there is no need of creating a proforma invoice as per the business requirement you can directly create a excise invoice with reference to commercial invoice only.

regards

[Former Member]

Isaac,

which excise invoice you are talking about which takes reference of delivery document??

As J1IIN will only be created with reference to the Invoice, Be it will Proforma or Commercial.

You can very well create Excise with reference to Commercial invoice... Proforma we used when there is some legal r fucntional restriction of creation of commercial invoice.

Thanks,

Raja