Explain what is proforma invoice and what are the types of it?
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Answer Posted / Gyanendra Pandey
A Proforma Invoice is a preliminary or draft sales invoice issued by a supplier to a customer before shipping the goods. It serves as an agreement for the sale, detailing the items, quantities, prices, and other terms agreed upon between both parties. In SAP SD, there are three types of Proforma Invoices: Advance Payment Invoice (VABD), Partial Delivery Invoice (VBAP with payment term 'A'), and Delivery Confirmation with Payment Term 'X' (VBAP with payment term 'X').
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