It is the document issued by the seller to the buyer stating goods or services, quality, rate, terms of sales, any taxation if any, etc.
Terms of sales included trade, cash, and quality discounts offered to the buyer.
What an invoice is ?
Invoice is a document used in business transactions.
It is issued from the seller to the buyer. The following are the contents of the invoice.
1 seller's company name and address
2 date of dispatch or shipment of the goods.
3 Receiver's (buyer's) company name and address
4 Details of goods as brands, quality, or units, size, packing
5 price, rate, total amount
Commission or discount and its type, e.g trade discount, cash discount, or quality discount. All types of discounts are deducted from the gross amount of the invoice.
6 In case of foreign trade, the name of the bank through which the payment is to be made.
7 Mode of payment
8 Terms of sales
9 Mode of delivery (railway, Air, road)
10 Port of receipt
Proforma Invoice
The word 'proforma' refers to 'for from' s sake'. This types of invoice is issued to the buyer before the delivery is made to him.
It contains such information as price, amount, packing, mail expenses, and discount.
It the amount of the order is less than the standard order of the company, additional surcharge is added and separately shown on the invoice.
Objectives of proforma Invoice:
Proforma invoice is used under the following situations:
1 The amount mentioned in the invoice is the one which the buyer has to pay in advance if the delivery. Or the invoice may be sent along with the shipment. In the case the invoice amount is to be paid at the time of delivery.
2 when the seller decides that he must get the payment in advance he uses it.
In the case of export the proforma invoice is presented to the custom authorities to enable them to assess the value of goods. On the ground of it the import or export duty is imposed.
3 When the sellers hands over the goods to his agent, the agent does not pay until the goods are sold. In this case the seller issue proforma invoice to the agent.
4 The seller may use it as a quotation form.
5 The proforma invoice may be issued along with the goods sent on approval. If they are accepted, the buyer will have ti make payment in accordance with the proforma invoice.
CONSULAR INVOICE
Consular invoice is used import process. When ad duty is imposed, the importer, or his agent gets the exporter's invoice confirmed by his (importer's) country's consul general, who is posted in the exporter's Country.
This conformation is related to the invoice price, which is expressed in FOB.
The duty is imposed on the basis of confirmed price. Hence, this confirmed invoice is known as "Consular Invoice"
Learning process is continue....
Thanks for visiting here and for more information follow and subscribe my blog.
Visit
Comments
Post a Comment
If you have any question then please comment.