A Proforma Invoice is a preliminary or draft invoice sent by a seller to a buyer before the shipment of goods. It provides detailed information about the products, prices, quantity, payment terms, and delivery conditions.
It is not a final invoice and usually does not request immediate payment, but it helps the buyer understand the cost and details of the transaction.
Purpose of a Proforma Invoice:
To inform the buyer about the price and terms of the sale
To help the buyer arrange payment or import permits
To be used for customs or banking procedures
Typical Information Included:
Seller and buyer details
Description of goods
Quantity and unit price
Total price
Delivery terms (Incoterms)
Payment terms
Estimated shipment date