Dear admin,
Can you please add an extra tag below the Sales Quote of (Pro-Forma Invoice) because we need it on regular basis. I have seen some of your conversation about pro-forma invoice. It has nothing to do with receivable or any other account but still it is very useful in some companies. Those companies who need it will use and those who do not want will ignore it. It is a request to please add a tag along with others in side below the sales quote.
Thank you
Sales Quotes & Proforma invoice are more or less the same.
You can edit the title according to your needs when necessary.
Please read the topic below.
Dear Mr. Sharpdrivetek,
I got your point but it would be very useful for some of us who wants this thing in separate tab/tag. If it bothers someone then he can uncheck and perform the same thing in sales quote tab/tag but the others who want it as a separate tab/tag will appreciate if it appears.
Thanks
why do you need to implement something when it is already available and can be easily used…
in the topic i pointed you to, it clearly explains how you can implement and track easily.
A new tab will not be added. The sales quote fits the purpose of a pro forma invoice, regardless of what it is called. It also fits the needs of quotes, proposals, bids, etc. The point of the variable title was to allow users like you to change the name. But there is no need for a separate tab.
HI TUT,
If Sales quotes fulfill the requirement of ProForma Invoice how to do we take advance payment since there is no option for the payment. Please advise.
In our scenario, we submit performa invoice in order to take advance payment from the client. Once order completes or deliver completes then we submit Sales Invoice.
Thanks in advance
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The guide shows how to record deposits and advance payments.
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This guide isn’t in any way linked to the emotion of a pro-forma. Under every point of view a pro-forma is more like an invoice than a quotation. You should have aged payables, you should have payments against a pro-forma and finally you should have the option to include them in the balance sheet as “invoices to be emitted”.
How can “invoices to be emitted” be an asset for the company?
Either the invoice has been created or it hasn’t. If it hasn’t then no income has been generated and no asset can be posted to the Balance Sheet.
This guide shows how to issue a Sales Quote. You can change the heading to Pro-forma Invoice
Under the Italian law, and so i presume under every european law, you don’t need the emittion of an invoice to have a credit (keep in mind that an invoice it’s only a fiscal document) but the credit generates from the signature of a contract and the consequent events.
So… yes. Under a legal point of view a pro-forma is an asset (or a debt if you receive one) while a quotation is not.
a proforma invoice can be generated in two situations: before a sales agreement & after a sales agreement.
a proforma invoice issued before a sales agreement is considered as a quotation. this has no financial impact on the business.
a proforma invoice issued after a sales agreement is considered as an acceptance of the sales order received from the customer, in your words what you call a contract. this is entered as a Sales Order in Manager rather than as a Sales Quote.
Under a legal point of view a pro-forma is only emitted after the maturation of a credit and is not a contract (the contract happened before).
It’s a note of payment after you have matured the credit without a fiscal impact
Usually Income in the P & L is recognised when delivery of goods or services has taken place.
A signed contract does not give usually rise to income.
If the customer pays in advance of the goods or services actually being delivered then this is not income but is carried on the Balance Sheet as a debt owing to the customer.
If it is a case of the goods or services being delivered over a period of time eg subscription services paid in advance or a building under construction, then yes you can account for that part of the income which has been delivered but you cannot book a future delivery of a good or service as income before the delivery takes place.
What exactly are you selling using a pro-forma invoice?
Pro-forma are emitted by service providers like lawyers for services already delivered. They then emit the invoice once they receive the payment. Other forms admitted by law are for rents. By law you cannot emit a pro-forma for goods. In this case you can emit a sale quote/order or an invoice for goods delivered.
OK. I can see that if your are accounting on a cash basis, why you would issue a pro-forma invoice and not issue a real invoice until you receive the payment.
In the case of lawyers, I don’t understand why, if the service has been delivered, they don’t dont just issue an invoice. But I am not an expert in fiscal law so there are probably things here I don’t understand.
I know that in Italy the delay in payments can sometimes be very long compared to other EU countries so perhaps that is the reason behind issuing pro-forma invoices
Mainly because you’ll have to pay VAT (it’s on accrual basis) even if you don’t get the money.