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Distinguish Between Proforma Invoice and Invoice - Comparison

square 1. Meaning ↓

Proforma Invoice is a quotation given in the form of invoice.

Invoice is a bill of a sale transaction showing the amount to be paid by the buyer.

distinguish between proforma invoice and invoice

square 2. When Sent?

Proforma Invoice is sent at the request of the buyer before he places the order.

Invoice is sent after the goods being despatched by the seller.

square 3. Purpose ↓

Proforma Invoice enables buyer to decide whether to place the order or not.

Invoice helps the buyer to know the exact amount due by him to the seller.

square 4. Legality ↓

Proforma Invoice does not have any legal validity.

Invoice is a legal document, and can be produced in the court.

square 5. Entries in the Books of Account ↓

Under Proforma Invoice, there is no question of passing entries in the books of account.

Invoice provides a basis for recording entries in the books of account.

square 6. Buyer's Responsibility ↓

The buyer is not bound by a proforma invoice to place an order or to some other thing.

The buyer is bound to make payment as per the invoice.

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