Purchase Order vs Proforma Invoice vs Commercial Invoice
Learn the purpose of a buyer purchase order, seller proforma invoice, and shipment commercial invoice—and which details should match across them.
Reviewed and updated October 3, 2026 by Virteche Global
These documents appear at different points in a transaction. Their legal effect depends on the contract and jurisdiction, but operationally they should tell a consistent story about the parties, goods, price, quantity, delivery, and payment.
Purchase order
A purchase order is issued by the buyer to authorize a purchase under stated details and terms. It commonly includes buyer and supplier entities, ship-to and bill-to details, item specifications, quantities, prices, delivery date, Incoterms rule and named place, payment terms, and referenced conditions.
Proforma invoice
A proforma invoice is usually a seller-issued pre-shipment commercial proposal or payment document. It can support buyer approval, a deposit, financing, or import planning, but it is not the final customs invoice for shipped goods.
Commercial invoice
The commercial invoice records the goods in the shipment and supports payment, accounting, and customs processes. Destination rules determine required data. It should reflect what actually shipped and reconcile with the order, packing list, and transport record.
- Match legal names, addresses, currency, item descriptions, quantities, values, origin, and delivery terms.
- Record authorized changes rather than allowing unexplained differences.
- Have a customs professional review invoice requirements for the destination.
Frequently asked questions
Is a proforma invoice a demand for payment?
It can be used to request a deposit or prepayment, but its legal and accounting treatment varies. The parties should agree the payment milestone and final invoicing process in writing.