An invoice is a detailed list of services or items bought by the client, including the amount that is expected to be paid. It is one of the many ways a merchant or freelancer bills his customer or buyer. An invoice letter may be attached to summarize its contents.
A purchase order, which is agreed upon by both client and supplier, helps to make a valid and legal invoice. The invoice in itself does not hold any legality or validity, but with supporting documents, the vendor could ask his customer to pay the full amount that he is owed.
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Pro Forma Invoices
By definition, pro forma means “for form,” which means that a pro forma invoice is only created for formality. This kind of invoice is not as legally binding as the commercial invoice; however, it contains the details of the items such as price and specifics as primarily agreed upon by both buyer and seller. A pro forma is considered as a confirmed purchase order, although the price and some specifications can still be adjusted until final sale. A seller’s quotation could also come in the form of pro forma, just to give the customer a heads-up on what is in the actual invoice or ask for advance payment.
A draft invoice is the summary or outline of how the actual commercial invoice looks like. It doesn’t have as much information or value as the commercial invoice and pro forma, but it allows the customer to see what items he or she bought. It is more like a prototype or an example rather than an actual document that could be used in representation of a commercial invoice; unlike the pro forma, which could be used for proof of purchase or customs functions.
Most Free Invoice templates have options for the kind of invoices you will create.
Draft Shipping Invoice
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Sample Draft Invoice
A draft invoice is not an official document but it is an integral part of the process since it is the preliminary step before you can go and charge your customers for the products and services. Here are the steps on how you can create a draft invoice:
- Put the name of your company and logo at the top of your invoice format. The office address and contact information may be placed as part of the header or as a footer.
- Indicate the kind of payment methods available; include relevant information like bank account number and account names.
- Create a chart or table to itemize the services or products. The column labels and the number of columns vary depending on the type of business or company you have.
- List down a summary of goods or services they want to purchase without computing discounts, fees, or taxes.
- Calculate the total purchase price and provide more information or reference.
Invoices are necessary in business, which is why a lot of companies employ the use of Sample Invoice and templates. Browse through our site for access to hundreds of corporate forms that are easy to download in PDF format.
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