Definition of pro forma invoice : a document provided prior to or with a shipment of goods (as for export) that describes the items and terms of sale but does not have the function of a real invoice First Known Use of pro forma invoice 1857, in the meaning defined above Learn More About pro forma invoice Share pro forma invoice
A proforma invoice is a document provided before or with a shipment of goods. It describes the items and terms of sale, but does not serve the function of a real invoice. It can act as an estimate or quotation for the customer – but not the final bill for payment.¹ What is the difference between a proforma invoice and an invoice?
Proforma invoice: Once the client has agreed to proceed with the service, a proforma invoice may be sent to provide an accurate cost of the product/service based on a detailed view of the client’s requirements. It should be labelled clearly as a “proforma invoice”. Changes may be applied before it is turned into a full invoice.
A proforma invoice is very similar to a standard (aka “sales”) invoice as both of them provide information about costs (per unit, volume, etc.), the number of items or the specific services, and the final cost. If you are supplying goods, the shipping cost is included in both types of invoice.
Pro Forma Invoice Meaning. Pro Forma Invoice is a document issued before a tax invoice by supplier/seller to buyer containing details about particulars of goods/services to be delivered to buyer including goods/services price, any other charges applicable such as delivery charges, applicable taxes, and quantity details or the total weight of the shipment.
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