List of documents required for exports from India

An invoice serves as proof of the transaction and provides a list of the goods sold or services rendered and their price. Using e-invoicing software that helps you keep track of all your sales, invoices, and payments will help you simplify your financials. Shopify POS lets you manage invoices and more, and works whether you sell online, in-store, or both. Recurring invoices are issued to customers at regular intervals for repeat transactions. Some examples include subscription box services or a yearly delivery subscription, like the one ASOS offers.

The buyer will issue a Purchase Order document to the seller’s company, the seller will confirm the new order with a Proforma Invoice document. An export packing list is more detailed than the packing list you provide for domestic shipments. A lot of exporters skip this step, thinking they’ll discuss it later. But if you don’t mention whether it’s 30 days, LC at sight, or 100% advance, it leaves the deal wide open for confusion. Include the date, proforma invoice number (you can create your own sequence), and the expected validity period of the quote.

In the intricate dance of international trade, the pro forma invoice is akin to a choreographer’s blueprint, outlining the anticipated moves before the performance begins. It sets the stage for what’s to come, providing a preliminary bill of sale that buyers and sellers use to finalize their trade agreements. Unlike a commercial invoice, which is used after the shipment of goods, a pro forma invoice is sent in advance. It details the types and quantities of goods, their value, and other important trade information such as shipping costs and weight. Understanding and managing export documentation is essential for any business involved in international trade. It not only helps in complying with legal requirements but also in building trust with partners and facilitating smooth transactions.

• The seller fills in specific data about the goods and terms, such as agreed prices and advance payment requirements.
• Buyers can use it to apply for import permits or arrange letters of credit before shipment.
• For importers, this document is often used to secure letters of credit or import licenses.
• If there are any disputes relating to the order, these documents will be referred to in a court of law.
• Excel allows full customization for currency, percentage formats, and formula-driven calculations.

Start your free trial with Shopify today—then use these resources to guide you through every step of the process. Perhaps then, you can use tools like Kladana that help manage inventory, orders, and invoicing in one place. Excel allows full customization for currency, percentage formats, and formula-driven calculations.

Showing GST for Domestic Buyer Previews

Customer information also goes at the top of your invoice and reflects the format of your company information. Include the customer’s name, billing address, shipping address (if different from billing address), phone number, and email address. Each invoice document should have its own reference number, and your bookkeeping system should keep a record of the numbers used. Your customers will use your invoice numbers to track payments on their end. If your business has moved beyond one-off invoices and now handles regular orders, stock tracking, or multiple buyers, Excel might start feeling limited.

Common Mistakes to Avoid

Therefore when selling and shipping products Internationally, exporters need to create a detailed Proforma Invoice template to include all important details of the order and shipping process. This ensures all financial obligations are transparent and agreed upon in advance. Integrating pro forma invoices with other export documents is a critical step in the export process, ensuring that all paperwork aligns and reflects the transaction accurately. This integration is not just about having all documents in place; it’s about creating a seamless flow of information that mirrors the terms agreed upon between the buyer and seller.

Item Description, Quantity, Price

By providing a clear and comprehensive preview of the deal, pro forma invoices help streamline the process, making global commerce more efficient and predictable. When creating a proforma invoice for international trade, it’s essential to remember that while it is not a legally binding document, it does lay the groundwork for the final sale agreement. It serves as a detailed estimate that can have legal and financial implications if misunderstood or misrepresented.

Just make sure you issue a revised version with a precise update date or a new reference number so there’s no confusion. In this blog, we’ll break down what a proforma invoice means, why it’s essential for Indian exporters, what to include, and how it helps protect both your business and your buyer. Retainer invoices are issued to collect advance payments for products or services. They’re a form of invoicing for a deposit, allowing you to confirm a commitment from a customer.

During the manufacturing and packaging process, there may be small discrepencies in the quantities of products that are actually supplied. This is usually due to the quantity of products that the supplier can actually load inside a shipping container. A Commercial Invoice will be issued after the products have been manufactured and loaded, which will contain the exact information of the shipment. This document will be used in how to create proforma invoice and purchase order documents for export the customs clearance process upon arrival. Exporters typically issue a proforma invoice early in the order process often before requesting a deposit or booking freight to give buyers a clear understanding of costs.

Benefits: Cost-savings and faster payments

The Proforma invoice will include the seller’s bank details so that the buyer can arrange payments as required. At IncoDocs, we provide a free proforma invoice template designed for global trade. It includes all required fields and helps sellers meet international documentation standards. You can fill it out online, sign and stamp it digitally, and send it to buyers in just a few clicks.

• Purchase order forms are pre-numbered to facilitate efficient tracking and management of orders.
• Exporters typically issue a proforma invoice early in the order process often before requesting a deposit or booking freight to give buyers a clear understanding of costs.
• A Proforma Invoice template is an important document used when selling goods Internationally.
• The Brazilian retailer uses this invoice to secure a letter of credit from their bank and to begin the import declaration process with Brazilian customs.

It does not guarantee compliance with the current tax laws of your country. This manual process can help you create an editable proforma invoice in Excel. Include full business names, addresses, tax identification numbers for GST calculation (or VAT), and contact info for both parties. Name, address, GST/VAT ID (if applicable), and contact details are essential for identifying the parties involved. An Excel-based proforma invoice is simply beyond a table with numbers. Instead, it is a communication tool that shows the buyer what they’ll get, when they’ll get it, and how much it will cost.

Proforma Invoice Template

In the realm of international trade, the pro forma invoice is more than just a preliminary bill of sale. It serves as a critical tool for both buyers and sellers, laying the groundwork for a smooth transaction and ensuring that all parties are on the same page regarding the terms of the export. In the realm of international trade, the pro forma invoice is not just a preliminary bill of sale but a critical document that sets the tone for the entire transaction. It’s a blueprint, a map that guides both the seller and the buyer through the intricate landscape of export documentation. Crafting an effective pro forma invoice template is akin to designing a master key that unlocks the smooth flow of goods, funds, and information across borders.

Tips for creating effective invoices

For Indian exporters, a proforma invoice isn’t just paperwork—it’s a tool that helps you do business with confidence. Whether you’re shipping textiles to Dubai or machine parts to Germany, this document can smooth out your entire export process. That means it can’t be used to demand payment or as proof of sale for customs. But it’s still an essential part of the process because buyers often need it to apply for import licenses, set up financing, or finalise their side of the paperwork. Before any product ships or a deal is signed, one key document often sets the stage. It’s not a demand for payment but rather a formal quote that shows a detailed preview of the final invoice.