subject: Commercial invoice template: Next step to Pro Forma invoice [print this page] Commercial invoice template: Next step to Pro Forma invoice
The word invoice' might look simple, like a word which consists of seven alphabets. However it is not true to assume it to be so simple because for any trading business firm, especially the one involved in foreign trading requires to have an invoice which is the most important document to carry out cross border trading and the most difficult too. Before generating an invoice, seller has to send a Pro Forma invoice to give consolidated information about the dealing like quotation for shipment which include currency, credit policy etc. If you look in to both commercial invoice template and Pro Forma invoice template, you cannot discriminate between both. The difference between both of them is commercial invoice has a heading specifying that it is commercial invoice whereas pro forma invoice has no heading, specified.
The most important difference between the two is that the commercial invoice contains signature of seller and pro forma invoice does not contain it. If you do not have invoice with your shipment and you show this commercial invoice to customs, they will not allow your shipment to enter into their territory. You must have inferred that the invoice is considered as a legal document; whereas pro forma is not a legal document but is just an estimation document.
Commercial invoice incorporated with VAT includes local taxes and central sales taxes. It must be clearly mentioned on the invoice if buyer is different from seller because trading is taking place internationally. It is necessary for shipping company to enclose an original copy of invoice with the shipment. One most important thing which should be considered by shipping company is proper description of goods should be given in the place mentioned on commercial invoice template. Countries like United States of America, Australia, New Zealand and Singapore are very stringent with foreign goods which are imported to their countries.
