what is the difference between invoice and proforma invoice?
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Answer Posted / kishore
Pro Forma Invoice: This Pro-forma invoice is one which is
sent before the commercial Invoice(original invoice) to
receive advance payment from buyer. The seller will not
record this as 'Account Receivable' in his account and
buyer will not record it as 'Accounts Payable'in his
account. This is not true invoice.
Invoice" This is true invoice where in the seller and
buyer will record in their 'Accounts Receivable section'
and 'Accounts Payable Section'. Payment will be done once
the invoice is received by the buyer .
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