Proforma Invoice vs. Commercial Invoice: What's the Difference
Exporters mix these up constantly. Here's when each document is used, what must match, and why banks care.
If you ship internationally, you will create both a proforma invoice and a commercial invoice — often for the same shipment, weeks apart. They look similar. They are not the same document.
A proforma invoice is a preliminary quote. It tells the buyer what you intend to sell, at what price, under which terms. It is not a demand for payment. Buyers use it to apply for import licenses, arrange letters of credit, or get internal purchase approval.
A commercial invoice is the formal billing document that travels with the goods. Customs uses it for valuation. Banks use it when negotiating documents under a letter of credit. The buyer uses it to pay you.
The details that matter most — description of goods, quantities, unit prices, Incoterms, currency — should match between the two. When they don't, banks and customs raise discrepancies. That delay is almost always preventable.
The practical workflow most exporters follow: issue a proforma to lock the deal, then convert it into a commercial invoice once the shipment is firm. If you retype everything by hand, small mismatches creep in. If both documents pull from the same shipment record, they stay consistent by design.
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.