Difference between Pro-Forma invoice, Invoice, and Quotation

Question

dear all,
I am confused between the use cases when should I use Pro-Forma invoice, Invoice, and Quotation? Can someone help explaining the usability and difference, better yet if there is an example for a business use case .. Thank you all

Cybrosys Techno Solutions Pvt.Ltd · Accepted Answer

Hi,
A */Pro-forma invoice/* is a forecasted document before the final bill is issued. Pro-forma is prepared based on the cost mentioned in a sales order. This defines the promise of a vendor to deliver the goods or services at a given price as advised to the buyer.
The */invoice/* should outline the goods or services provided and the total price as well as VAT (if applicable), along with any discounts that have been applied.
A */quotation/*, on the other hand, is issued before the goods or servi

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