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What is a proforma invoice?

Even if it is called an invoice, the proforma has no accounting meaning.

A proforma invoice is only an offer (like a "Quote" or "Estimate") or a “purchase invitation” issued by the seller of goods or services to a potential customer.

As our customer you are not required to pay a quote from Hanco, even if all the information that appears in a normal tax invoice appears on your Hanco proforma invoice.

However, you may pay all or part of a proforma invoice and we will credit your account, with the understanding that work preformed will be similar to that of the proforma invoice we have issued to you already.

Regardless of whether you have paid all or part of the proforma invoice, after we start work, Hanco will issue and send the buyer an actual tax invoice, which you will then have to post in your accounts. See more in our Terms of Service for details.

If you as the Hanco customer pays the amount mentioned in the proforma invoice, Hanco will issue and send the buyer an actual tax invoice, which you will then have to post in your accounts.

We use proforma invoice details to issue the tax invoice after the payment has been confirmed to your account.

When is a proforma invoice issued?

In general, Hanco issues a proforma invoice when there is no certainty that a customer will pay for goods or services. Because a proforma is, in fact, a breakdown of the products or services we offer, accompanied by a price we offer to only to you (Hanco may make some discounts that are not available to the public, for example).

It is also a tool that companies like Hanco use when selling products or services without a contract with Hanco, but they want to pay the money before delivery of Hanco Solutions.

Proforma Invoice Posting

Proform invoices are not recorded in accounting because they are merely a breakdown of the offer, not a document that obliges a customer to pay as is the case with a tax invoice.

Read more on orders, invoicing and payments in our Terms of Service

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Knowledgebase articles do not form part of the Terms of Service, accounts, accounting, financial, invoices, payments, billing, quotes, estimates, proforma