How to show an advance payment discount on a commercial invoice?

Advance payment in international trade defined as a payment that is made ahead of shipment take place, such as importers are paying for whole or part of the goods value before they actually receive them. 

Sometimes exporters and importers agree on an advance payments, which will be taking place ahead of the shipments. 

These kinds of advance payments should be demanded via proforma invoices and the advance payment amount must be shown as a discount on the commercial invoices.

On this page I will try to explain how to show an advance payment discount on a commercial invoice.

Titles of Invoices: Commercial Invoice, Tax Invoice, Proforma Invoice

Invoice titles could create confusion among exporters and importers in some occasions. 

The biggest problem in regards to titles of invoices occurs when the payment term is letter of credit.

"Invoice" and "commercial invoice" are the main titles of invoices in circulation in international trade. 

Tax invoice and proforma invoice are another two common invoice titles.

Today I would like to explain the differences between various invoice titles.

Should commercial invoice and packing list show the same issuance date?

Exporters create packing list and commercial invoice on the same day for a regular international trade transaction.

But in some occasions one of the documents may need to be created earlier than the other.

For example, certified invoices or legalized invoices may have to be created earlier than the packing list, as certification and legalization process takes quite a long time.

Especially if the selected payment method is letter of credit, exporters frequently ask a common question in regards to the dates of the packing lists and commercial invoices.

Should commercial invoice and packing list show the same issuance date under letter of credit rules?

What is the relationship between incoterms and prices on the commercial invoice?

Exporters and importers use Incoterms very often on their of the daily language, as a delivery term is one of the key elements of international trade transactions. 

Almost every sales contract or proforma invoice contains an incoterms clause such as FOB New York Port, Incoterms 2010, CIF Dammam Port, Saudi Arabia, Incoterms 2010 etc. 

Furthermore, incoterms and prices shown on the commercial invoices have strict relationship. 

Delivery places of the goods, the party who pays for the freight costs and insurance premium are the main incoterms related determinants of the prices.

Today I would like to explain the relationship between incoterms and prices on the commercial invoice

What are the differences between proforma invoice and commercial invoice?

Proforma invoice is a written proposal, issued by the exporter, which contains the terms and conditions of the foreign trade transaction. 

Proforma invoice is issued at the beginning of the transaction and it would not be accepted as a final document. 

It can be amended even after it is signed by both parties.

Commercial invoice also states the details of the transaction with one exception. 

Commercial invoice issued in order to complete the export and import operation in a foreign trade transaction, as a result its contents are final and are not subject to any further change or amendment.

PS: All corrections made on the face of the commercial invoice have to be authenticated by the issuer.

Today I would like to mention the differences between a proforma invoice and a commercial invoice.