What’s the difference between a PI and an INVOICE?

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Time of issue：

2025-12-26 17:35

PI (Proforma Invoice, Proforma Invoice) And and INVOICE (Commercial Invoice, Commercial Invoice) These are two core documents in international trade, and they differ fundamentally in terms of their uses, legal effect, timing of issuance, and other aspects. The specific comparison is as follows:

Dimension	PI (Proforma Invoice)	INVOICE (Commercial Invoice)
Core definition	Issued by the seller to the buyer Estimated Quotation , is an informal price list.	Issued by the seller after delivery of the goods. Official Receipt of Payment is the core settlement document for international trade.
Issuance timing	During the negotiation phase of the transaction, prior to signing the formal contract.	After the goods are produced and shipped, or submitted together with shipping documents such as the bill of lading.
Legal effect	Does not have formal legal effect; serves only as a reference for quotations and proof of intent to transact.	It has full legal effect and serves as the statutory basis for accounting and payment collection between the buyer and seller.
Main uses	1. To enable the buyer to understand the details of the goods, the prices, and the total amount; 2. For the buyer’s use in applying for an import license, foreign exchange quota, or requesting the bank to issue a letter of credit (L/C); 3. As a reference basis for the parties to enter into a formal contract.	1. Payment and receipt vouchers as well as accounting vouchers for both the buyer and seller; 2. The core basis for customs clearance and tax assessment; 3. Key documents reviewed by banks during letter-of-credit settlements; 4. Legal evidence in trade disputes.
Document Nature	Informal, estimated document—prices, quantities, and other details are negotiable.	Official, definitive documents whose content must be completely consistent with the actual shipment and the terms of the contract.
Does it match the actual situation?	Allow for differences from the final actual transaction.	It must be completely consistent with the actual goods shipped, including quantity and amount; otherwise, customs clearance or foreign exchange settlement will not be possible.

Additional notes

Process association

The typical trade process is: PI quotation → Buyer confirmation → Contract signing → Seller’s shipment → INVOICE issued → Buyer’s payment 。

Special scenarios

In some small-value transactions or sample orders, the PI may also be agreed upon by both parties as a simplified settlement document; however, such arrangements do not have universal legal effect.

Language differences

PI is a term exclusive to foreign trade; in everyday contexts, INVOICE can also refer to a general “invoice,” but in international trade, it must be explicitly specified as... Commercial Invoice 。

PI (Proforma Invoice, Proforma Invoice)

INVOICE (Commercial Invoice, Commercial Invoice)

END

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