Difference between invoice

[Former Member]

Hi,

What are the differences between Billing document, Proforma Invoice, Invoice, Commerical Invoice?

[Former Member · Accepted solution]

1.An invoice that is created on paper for exported goods to provide the customs authorities with evidence of the cost of the goods.

When you deal in export, you may need to print pro forma invoices. They are used to give the importer or the responsible authorities in the import country details about forthcoming shipments.

A pro forma invoice appears exactly the same as a customer invoice. The difference is that this invoice does not need to be paid. Therefore, the system does not forward data to Financial Accounting (FI). No statistical data is created on the basis of pro forma invoices.

A sales document used to bill a customer for a goods delivery or a service

The difference is that this invoice does need to be paid. Therefore, the system does t forward data to Financial Accounting (FI). statistical data is created on the basis of invoices.

[Former Member]

Hi Manivannan,

Billing document is a basic document which ever is involved in the process of billing/a link betwn. SD and FI. All the document types say it invoice, proforma, credit memo, debit memo anything like this are called billing documents.

Proforma Invoice is an invoice which is not passed to accounting and used for transporting or an information to the customer to keep the payment ready kind of things.

Invoice or commercial Invoice is the final invoice which passes to accounting and updates the G/Ls

I hope this is clear

Regards

Mahesh

[Former Member]

Billing Document as such itself would be a legal document which will be sent to the customer now there can be different types of billing document such as invoice, pro forma invoice .....

Invoice would be a normal bill which will have the total goods/services sold to the customer along with all the other pricing details which the customer has to pay

A pro forma invoice would be used in a situation where you need to export goods and without a sold receipt of goods you cant do it so you just take a normal pro forma invoice which will accompany the goods and then when the customer received the goods you can raise an invoice for him....( The advantage here is that you can correct the invoice if some data has to be changed ) but once if the invoice is raised its tough to do it from system point of view as then you need to do an invoice cancellation and stuff.

the other types of billing document would be credit and debit memos

Hope this helps

Cheers

[Former Member]

Hi Manivannan,

Billing document / Invoice & Commercial Invoice are the same where in a Accounting entry happens and you Debit the Customer a/c and Credit the Sales, Excise Duty & Taxes.

In case of Proforma Invoice a Accounting entry is not created. Proforma is generally used in case of Stock Transfers where you do not need accounting entry to happen as the goods are shifted from 1 plant to another within the same company code.

Hope the above information helps you.

REWARD if it helps you!!

Regards,

Ajinkya

[Former Member]

hi

proforma invoice while creating it doesn't post to accounting it is just for information purpose to know the value of a invoice or we have to attach it while transporting goods

invoice is an actual document which posts to the corresponding g/l accounts

regards