Question

there are three types of invoices. Explain one and identify which os truly an invoice and which is not.

Answer 1

Ans

The three types of invoices presented are the following:

1. Commercial invoice
2. Pro Forma invoice
3. Consular invoice

Step 1:

Commercial invoice

A commercial invoice is the primary document used for detailing the price, value and quantity of goods being sold. It is the document used to determine taxes and duties and is required for a package to clear customers. For this reason, it is the most important document needed when you're shipping internationally.

Think of this document as not just an invoice or a receipt, but rather a "biography" of the package.

Importance of commercial invoice

commercial invoices are important for both B2B and B2C companies. Shipping to foreign destinations can be tricky, but as long as you provide proper documents, it will go smoothly.

Besides getting your package through customs, commercial invoices:

• Provide your customer additional details on their order
• Help businesses evaluate sales and calculate annual reports
• Can be used to discover insights on target markets for specific products
• Can be an organized way to help with cash flow

Step 2:

Of the three types of invoices, commercial invoice is truly and invoice because it provide a detailed outline of the transaction between the importer and the exporter for payment.The consular and pro forma are not true invoices. The consular invoice is a document and a mean of administering protocol in legitimizing an invoice and providing approval for goods entering into the importers country through customs by providing visas. The pro forma invoice is used to obtain a letter of crrdit, not for payment.