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Pro Forma Invoice Template
A Pro Forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. It serves as a commitment from the seller to provide specified goods and indicates the terms of sale.
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What is a pro forma invoice?
A pro forma (or proforma) invoice is a preliminary invoice that provides an estimate of the value and quantity of goods or services to be traded between a buyer and a seller. It is not a legally binding document and is used primarily for budgeting and planning purposes.
When is a pro forma invoice used?
A pro forma invoice is often used in international trade, to provide an estimate of the cost of goods or services before the final transaction takes place. It can also be used for budgeting, securing financing, or to communicate the expected details of a sale to the buyer.
What is the difference between a pro forma invoice and a commercial invoice?
A commercial invoice is a legally binding document that provides a detailed record of the goods or services sold and the payment terms agreed upon between the buyer and the seller. A pro forma invoice, on the other hand, is a preliminary invoice used for estimation purposes only, and does not have the same level of detail or legal obligations as a commercial invoice.
What information should be included in a pro forma invoice?
A pro forma invoice should include the name and contact information of both the buyer and the seller, a description of the goods or services being sold, the unit price and total cost, the payment terms, any relevant trade or shipping information (shipping details, any applicable taxes or fees), and a statement indicating that the invoice is a Pro Forma Invoice.
What is the benefit of using a pro forma invoice for both the buyer and seller?
The benefit of using a pro forma invoice for both the buyer and seller is that it allows them to agree on the terms of the sale, including the cost and payment terms, before the final transaction takes place. This helps to ensure that both parties have a clear understanding of the sale and helps to avoid any potential disputes.