A pro forma invoice is a document used in accounting that does not request payment from the recipient. It is issued for the purpose of documenting the value of the goods or services.
Overall, a pro forma invoice primarily serves tax purposes. By definition, however, a pro forma invoice is not a true invoice. It does not request payment from the recipient. It serves to document the value of a shipment of goods.
Proforma invoices in export
The primary use of pro forma invoices is in export transactions with non-EU countries. Using a pro forma invoice allows for the free shipment of goods and products to business partners. It serves as proof of purchase for goods that have no commercial value. Pro forma invoices are typically included with shipments, as they provide a more detailed description of the goods and are therefore essential for customs clearance.
Generating pro forma invoices in CATAMA software
Proforma invoices can be generated in CATAMA software with one click in the invoicing section for normal orders and invoices, in order to demonstrate the value of a shipment of goods, for example as mentioned above for tax purposes.
By including a pro forma invoice, no flat-rate customs duty is levied on shipments of goods abroad. For deliveries accompanied by a pro forma invoice, customs uses the actual price paid as the basis for assessment.
Proforma invoice as an advance invoice
Another use for pro forma invoices is as a preliminary copy of an invoice. In CATAMA software, pro forma invoices can also be generated to announce an invoice that will be sent later. In this case, the pro forma invoice contains the supplier's address and bank details, the price of the goods and services, as well as the payment terms, delivery conditions, and a description of the goods.
What value of goods must be declared?
A pro forma invoice for export must include a declared value for the shipment. If there are no realistic estimates or calculations regarding the value of the goods, understating the value to avoid exceeding certain limits should be avoided. A value that does not reflect reality will be discovered at the latest during the next tax audit . The following options are available:
- Registration of the precise value of the goods at a later date or
- Submission of an incomplete customs declaration with a reference to the customs value.
Pro forma invoices in your own accounting system
In invoicing and accounting, pro forma invoices are also used as accruals for accounts receivable and accounts payable. A pro forma invoice can be generated in CATAMA software with just a few clicks and can replace a "normal" invoice if one is not yet available as a supporting document.
For example, if certain deliveries of goods have been announced for the end of the year or the beginning of the year, a pro forma invoice can be created to book the costs of the services in advance.
accounting system by the original invoice upon its receipt We explain how to create pro forma invoices in the CATAMA software suite .
Application areas of pro forma calculation
- For import/export transactions, as proof of the value of goods for customs or tax office assessments
- Free replacement of goods, e.g. in case of warranty
- Declaration of free sample shipments
- Deliveries and services on a prepayment basis
- Spare parts deliveries
- Donations & Gifts
