When is the right time to issue a commercial invoice to the customer?
Thread Content
This post was last edited by zhangqi1234 on 2015-11-12 20:09. When and under what circumstances is it appropriate to issue a commercial invoice for foreign trade export orders to the customer? (It’s risk-free.) It’s our first time working together, and no contract has been signed with the client yet; however, the client has no objections to the price. They have asked us to \"send me invoice soon.\" What does the client mean by \"send me invoice soon\" – an informal invoice or a commercial invoice? Seeking help from those who know the subject. . . . reward_7ree
An invoice pro forma is sufficient; it’s better to issue a formal invoice after receiving the payment.
Usually, it’s a proforma invoice; there’s time to prepare it once the customer transfers the money to your company’s account, unless the customer is in a hurry, in which case you need to consult your supervisor
No invoice is required abroad; only a pro forma invoice is needed at customs clearance
Generally, an informal invoice is issued before payment is received；
“Send me invoice soon” means to give me the invoice as quickly as possible. It is a proforma invoice.
Normally, it is issued before signing the contract, as the proforma invoice contains details such as the account number and bank account information, product names, specifications, quantities, etc.; the contract is then signed afterwards
It is usually an invoice pro forma, or a formal invoice, issued after the contractual obligations have been fulfilled. If you’re not sure, it’s best to confirm with the client (as it’s likely the first time working together); a simple email will do, so there’s no need to worry about it yourself. Wish you prosperity!
Commercial invoice – I’m not sure what you mean by that Generally, this is clearly specified in the contract. Suitable for scenarios where acceptance, payment, etc. are closely linked. So, it’s meaningless to discuss this here. In a buyer’s market, especially with large customers who have strong bargaining power, payment is made only after the goods are delivered, the documents are provided, and the inspection is successful. If you don’t issue an invoice, there are no grounds for making a payment request, and they happily refrain from paying. Of course, for some contracts, due to factors such as technology, the vendor holds a slight advantage and can proceed with delivery and invoicing once payment is received. But as long as the payment isn’t 100%, there are still outstanding amounts such as inspection fees and quality assurance deposits. If you don’t issue an invoice, no accounts receivable are created, and it’s not reflected in the vendor’s records; thus, you won’t have any basis on which to demand payment in the future. It involves a lot of suffering; in one word, it’s difficult! Worried when there’s no project, worried when winning a bid, worried about failing to deliver on time, worried about losing control of costs, worried during on-site inspection, and most worried when unable to get paid. Haha, that’s why selling is really not easy!