List of documents required for exports from India
Customer information also goes at the top of your invoice and reflects the format of your company information. Include the customer’s name, billing address, shipping address (if different from billing address), phone number, and email address. Each invoice document should have its own reference number, and your bookkeeping system should keep a record of the numbers used. Your customers will use your invoice numbers to track payments on their end. If your business has moved beyond one-off invoices and now handles regular orders, stock tracking, or multiple buyers, Excel might start feeling limited.
FAQs on Proforma Invoice Templates
These programs typically include templates that you can customize with your company information and logo, as well as features such as the ability to track payments and generate reports. There are several ways to create an invoice, including using invoicing software or creating one manually. Mention expected timelines for payment (e.g., 30 days from delivery), currency, partial payments (if allowed), and any buyer-specific conditions. Because, with a proforma invoice in Excel you can create clean, functional templates without relying on expensive software. Because of this, it creates an unreliable process that is prone to human error. Every time that data is re-entered there is a real risk to your business.
For you as an exporter, a proforma invoice acts as a preliminary document that confirms the importer’s order and provides a detailed breakdown of shipment costs. It also becomes a foundational document that you can use to prepare the final commercial invoice. The proforma invoice template provides a structured way for sellers to present proposed transaction details to buyers. The seller fills in specific data about the goods and terms, such as agreed prices and advance payment requirements. Once the proforma invoice template is filled, it is sent to the buyer to help arrange financing or secure necessary import approvals.
- It’s not just about compliance; it’s about building a foundation of trust and clarity with your trading partners.
- The Export Order is usually prepared after the buyer has reviewed and accepted a proforma invoice, which is a preliminary bill that outlines the goods and costs before the actual shipment.
- Exporters can then create and manage their shipping documentation in 1 shared workspace.
- They’re used for customs declaration and customs fee calculation when products are exported across international borders.
As the global market continues to evolve, those who master the art of documentation will undoubtedly lead the way in international trade. An invoice is a final document issued after goods or services have been delivered, detailing the actual payment due. A proforma invoice is a preliminary document providing details, including seller and buyer details, shipment information, payment terms, and cost estimate before the sale is completed.
Letter of Credit (LoC)
A purchase order is initiated by the buyer to request goods from a supplier, listing items, quantities, agreed prices, and other details like shipping terms and the delivery date. On the other hand, a commercial invoice is issued by the supplier after shipping the goods. It acts as a bill to the buyer, detailing the products delivered, their quantities, prices, and the total amount due, including any additional agreed upon expenses such as shipping costs. Note that Proforma Invoices are issued pre-shipment, i.e. before the goods have been produced or delivered.
- For example, it will typically include item descriptions, quantities, prices, weight/dimensions of shipments, freight charges, expected timelines, and terms like Incoterms and payment method.
- While a proforma invoice helps outline the terms of a transaction, handling cross-border payments can still be a complex task.
- During this article we breakdown the main sections of a Proforma Invoice template and explain how shippers can create and download a Proforma Invoice for global trade.
- Include the date, proforma invoice number (you can create your own sequence), and the expected validity period of the quote.
Is Proforma Invoice Required For Indian Exporters?
An invoice, whether paper or digital, is a legally binding request for payment. It confirms and records the products a customer bought and the amount they have agreed to pay for those products. In wrapping it all up, let’s underscore why carefully crafting your proforma invoice can be a game-changer in international trade. Specify the validity period of the proforma invoice to legally protect both parties.
What is the difference between a Proforma Invoice and a Commercial Invoice?
A progress invoice is issued at set percentages of completion on long-term projects like construction, custom manufacturing, or agency retainers. It helps you fund work in stages and gives buyers visibility into project costs. Late payments can have a huge negative impact on your cash flow and, as a result, your business—i.e., your ability to pay your staff, rent, and suppliers. Proforma invoices typically follow a similar format to commercial invoices but are labeled “Proforma Invoice” and exclude demand for payment. Let’s break down the key fields you should always include for a proforma invoice format in Excel to download. You can create a proforma invoice step-by-step in Excel to avail yourself of a certain level of flexibility and accessibility that formal software tools can’t always match.
Core Fields: What to Include in Your Proforma Invoice
They need to ensure that all the necessary fields are present to meet the legal requirements of the destination country. For instance, some countries may require specific information about the origin of the goods, while others might be more concerned with the terms of sale or payment conditions. The proforma invoice must comply how to create proforma invoice and purchase order documents for export with both the exporter’s and the buyer’s country regulations, especially concerning customs requirements. Including accurate Harmonized System (HS) codes, country of origin, and any necessary licensing or certification information is important for legal compliance.
Use our shipping expertise to your advantage
It does not guarantee compliance with the current tax laws of your country. This manual process can help you create an editable proforma invoice in Excel. Include full business names, addresses, tax identification numbers for GST calculation (or VAT), and contact info for both parties. Name, address, GST/VAT ID (if applicable), and contact details are essential for identifying the parties involved. An Excel-based proforma invoice is simply beyond a table with numbers. Instead, it is a communication tool that shows the buyer what they’ll get, when they’ll get it, and how much it will cost.
Accounting and tax purposes
Just make sure you issue a revised version with a precise update date or a new reference number so there’s no confusion. In this blog, we’ll break down what a proforma invoice means, why it’s essential for Indian exporters, what to include, and how it helps protect both your business and your buyer. Retainer invoices are issued to collect advance payments for products or services. They’re a form of invoicing for a deposit, allowing you to confirm a commitment from a customer.
