sale invoice vs proforma invoice

Great question, Sagar! Understanding the difference between a **sale invoice** and a **proforma invoice** is essential—especially for someone like you diving deep into accounting and logistics. Here’s a clear breakdown:

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### 🧾 **Sale Invoice (Commercial Invoice)**
This is the **final, legally binding document** issued *after* goods or services are delivered.

– **Purpose**: Requests payment from the buyer.
– **Timing**: Issued *after* the sale is confirmed and goods/services are delivered.
– **Accounting**: Recorded in the seller’s and buyer’s books.
– **Legal Status**: Can be used for tax, audit, and legal purposes.
– **Includes**: Invoice number, date, buyer/seller details, item description, quantity, price, taxes, total amount due.

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### 📄 **Proforma Invoice**
This is a **preliminary document** sent *before* the actual sale happens.

– **Purpose**: Acts as a **quotation** or estimate to help the buyer decide.
– **Timing**: Issued *before* the sale is finalized.
– **Accounting**: Not recorded in financial books—no journal entry.
– **Legal Status**: Not legally binding; not used for tax or audit.
– **Includes**: Similar details as a sale invoice, but clearly marked “Proforma Invoice” and often includes validity period and terms.

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