6 Replies Latest reply: Nov 20, 2008 9:19 AM by Sivanand Vishnubhatla RSS

PROFORMA INVOICE

Deepak Joshi
Currently Being Moderated

Hi,

 

can anybody enumerate the differences between proforma invoice, commercial invoice and quotation  and cite their respective uses...

 

Thanks and Regards

 

Deepak Joshi

  • Re: PROFORMA INVOICE
    AMJATH PASHA
    Currently Being Moderated

    Dear Joshi,

     

    Proforma Invoice is the duplicate of Invoice which cannot be post for accounting.

     

    You can create Proforma invoice based on Order Related,  Delivery Related.

     

    Commercial Invoice:

     

    A legal document containing information on a foreign trade transaction

    The commercial invoice includes information on the contracted goods, quantities, unit prices, amounts, trading terms, forms of payment, and other details pertaining to the safe transport of goods to the importeru2019s country.

     

    Quotation:

     

    A Quotation is a response to a customeru2019s request for a status (e.g. prices, conditions, and terms of delivery) in your SAP System

     

     

    Regards

     

    Amjath

     

    Edited by: AMJAD PASHA on Nov 20, 2008 7:53 AM

  • Re: PROFORMA INVOICE
    ramanathan raja
    Currently Being Moderated

    Hi

    Quotation is an offer from the company to the customer for buying certain products under some terms and conditions

    In quotation we mention the validity period and the material qty

    Means we prapare aquotation to the customer for X product 100 pieces at Rs 100 per piece from 1.11.2008 to 30.11.2008

    In standard SAP the quotation is valid till the validity period is reached that is from 1.11.2008 to 30.11.2008 in our case and for 100 pieces ,after that it is closed

    Either if one of these is achieved first the quotation gets closed

     

    Again this can be altered according to business requirement thro the completion rule settins in VOV7

    PROFORMA INVOICE

    It is mainly used in export scenarios and in STO's

    It is a billing doc type but not actual billing or not even a duplicate bill

    Its main feature is it doesnt update G.L accounts and accounting doc is created after proforma inv

    Hence you can create as many as  proforma invoices as you want for a delivery etc

    proforma invoice canot be used as a referance doc

    2 types of proforma inv are available  F5 order related and F8 Delivery related

    Another main feature of proforma inv is the details or quantities given in proforma inv can vary from actual billing hence it is not a duplicate billing doc

     

     

    Commercial inv is the billing doc we create to the customer for the product delivered or services rendered

    Accounting doc gets generated after commercial invoice

    Regards

    Raja

     

    Edited by: ramanathan raja on Nov 20, 2008 12:27 PM

     

    Edited by: ramanathan raja on Nov 20, 2008 12:34 PM

  • Re: PROFORMA INVOICE
    Mohan Phani Krishna Bobba
    Currently Being Moderated

    Hi Joshi,

     

    Profroma Invoice is a invoice which will be sent to the customer in advance.This is created for customer's reference.After creating this the accounting entries are not going to be getting updated.But the commercial/real invoice is the invoice that is created against which the acounting entries are getting updated.(credited from the customer account etc.. will be happening here).This invoice will be sent to the customer by post or fax by depending on the customer relation.

     

    Coming to quotation will can be created independently or with reference to an inquiry.Quotation will be created by using the T.Code:VA21.For the customer inquiry we will give the quotation to him.By using the quotation we will create the sales order.With this we can create the delivery document/invoice.

     

    Many thanks & Warm regards

    Mohan

  • differences between proforma invoice, commercial invoice and quotation and
    yanamadala venkataswamy
    Currently Being Moderated

    preformed invoice is basically understanding between business wher as commercial invoice it's a legal one,

    quotation  is also a legal one for quote business agree to this much price time period will be there . after the time period the quote dosn'thave any value.

     

     

    Best regards,

    venkataswamy.y

  • Re: PROFORMA INVOICE
    anwar pasha
    Currently Being Moderated

    hai

     

      there is a small difference proforma invoice and invoice

     

      profroma invoice is F5 and F8

     

      proforma of invoice is duplicate invoice the values are not posted in to the accounting

       

      order related proforma of invoice is F8 u can use

     

      delivery relatd proforma invoice is F5

     

       this is the difference and i think u know invoice it once u save the invoice document VF01

     

      the values are posted to the accounting

     

      i think it will help u

     

      if any thing wrong please correct me

     

    thanks

    regards

    anwar

  • Re: PROFORMA INVOICE
    Sivanand Vishnubhatla
    Currently Being Moderated

    Hi there,

     

    Proforma invoice F5 / F8 is used as a reference purpose when the goods are shippied to the customer. In some countries like India goods shippied should have the value of the goods. So proforma invoice is triggered as a reference copy of thevalue of the gooods shipped. F5 / F8 invoices will not post into the A/c'g so will not have any impact to the billing. You can create as many proforma invoices as possible.

     

    Commercial invoices F1 / F2 are the actual billing docs that are created after delivery. Usually they may not be cretaed immediately after biiling. In many cases the customers returns the POD (proof of delivery) after which the invoices / billing is triggered. F1 / F2 invoices will post into A/c'g & will update the financial records. These docs are legal docs.

     

    Quotation QT is a legally binding doc where in the seller aggrees to sell the goods to the customer at an aggreed price & conditions. It has a validity period after which the quotation expires. The seller is legally bound to the quotation only within the validity period. After the validity expires he may sell the same products at a different price.

     

    Regards,

    Sivanand

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