Running a business
InvoiceOcean, 2014-05-23
Proforma invoice is an accounting document which shows how much a certain number of goods or services will cost in advance of a shipment. What differentiates it from an estimate or price quotation is the fact that the terms of sale are subject to change. It is used by a wide variety of businesses in every industry.
Proforma invoices are used in situations when the client have not yet agreed to the prices and is send a proforma to give them an idea of how much the goods or services will actually cost. InvoiceOcean allows your clients to easily convert a proforma to an invoice by clicking the "Convert to invoice" button. It is a useful feature which saves time on otherwise having to issue a new document and enter all data from the beginning.
A properly issued proforma should contain the below information:
- The name and address of both seller and buyer, as well as their Tax Identification Number (TIN).
- Document issue date along with the date of filing or completion of delivery of goods or services.
- The word "Invoice" and document number.
- The name of product / service.
- Measurement unit and quantity of sold goods or the nature of services.
- Net price, net value, tax rate, vat and gross value.
InvoiceOcean - news Running a business
Freight Industry in the US needs Better Invoicing Standards
Invoicing is a process that takes some effort and standardization in order for companies to function effectively for the long term. It is good to stick with one standard in terms of what is expected on an invoice, the payment to be delivered by the due date, and for companies to be able to follow their invoices (knowing which were paid and when for instance) for the long term with their clients.
Mike Lata (aka Maciej Duraj)
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