prof. invoice

Dear All, I would like to ask you about this statement meaning : “down payment from customer will be posted as a receivable without an invoice to apply to. This will result in a positive balance on Acct. Receivable. The other hand if Gulai company needs an invoice to apply to, FA company can provide with proforma invoice”, so does it seems there is a relation between down payment and proforma invoice ? Any explanations will be welcome and thanks Rgds, MArk

Hi Mark You can issue a proforma invoice to obtain a down payment on the work required, but only if the paying company requires this form of documentation. A proforma is not a real invoice, it is simulation of will be billed when appropriate and then netted off against your down payment made against the proforma.