Difference Between Pro-Forma
And Billing Doc
Conceptually and real life scenario - Proforma
invoice is used to declare cost of goods to custom department to estimate
duties/levies or to collect advance payment from the buyer.
Proforma invoice is exactly the same as to
Invoice. The difference is Proforma
invoice is need not to be paid and system does not transfer data to FI(Financial
accounting). No statistical data
is created on the basis of Proforma invoice.
F8 is delivery related proforma invoice
and you can create proforma invoice for same delivery you as many as you
like. Goods issue is not require to create Proforma invoice.
In case of sample orders - (delivery free of
charge- order type FD) - invoice is not generated. In VOV8
- billing is not proposed. Hence system does not generate invoice.
In Sample order/delivery account receivable does not increase but cost
of sample order is added to sales promotion account or client suggested
Proforma invoice will not create the accounting
Requirement for Proforma invoice may differs
from business perspective.
- One requirement is to intimate the customer
to settle an advance payment. While making the payment, customer wants
to see the sample bill for which he is going to make payment. So he demands
- Another requirement is to have a document while
freight forwarders carry the materials. An invoice or Proforma invoice
should be accompanied. This is the legal requirement.
- Another requirement to have proforma while
Stock Transport Order.
Billing document will have their values triggers
to accounts thru RAD resulting in an accounting document.
Proforma invoice will not triggers data to an
accounts, so an accounting document will not get generated and it is mostly
useful for Stock transfers from manufacturing plant to any depot whether
locally or abroad.
Itís a copy that's all to show to during Custom
when goods are in transit he has to carry this proforma document.
Difference between Billing and invoice.
Both are same in SD point of view:
- In SD terminology we call as Billing Document
- In FI terminology we call as INVOICE.
- In MM again only INVOICE will be there for
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