Pro forma invoice,
Definition of Pro forma invoice:
A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information such as the shipping weight and transport charges. Pro forma, Latin for “as a matter of form” or “for the sake of form,” invoices often come into play with international transactions, especially for customs purposes on imports.
An abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. Pro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importation. They differ from a normal invoice in not being a demand or request for payment.
A pro forma invoice differs from a simple price quotation because it is a binding agreement, although the terms of sale are subject to change. Businesses in virtually all industries use pro forma invoices to satisfy their internal purchasing-approval process. Pro forma invoices streamline the sales process by eliminating additional back-and-forth after a sale goes through, as all terms have been agreed to upfront.
How to use Pro forma invoice in a sentence?
- A pro forma invoice requires only enough information to allow customs to determine the duties needed from a general examination of the included goods.
- No guidelines are dictating the exact presentation or format of a pro forma invoice.
- Most pro forma invoices provide the buyer with a precise sale price.
- You need to make sure that you fully understand everything in a pro forma invoice before you go about signing it.
- You should always make sure that any pro forma invoice fully and accurately breaks down everything that needs to be known.
- We received our pro forma invoice that day and it made everyone really happy and also really relieved because we could finally get going.
Meaning of Pro forma invoice & Pro forma invoice Definition