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A proforma invoice is a preliminary bill provided to a buyer before a transaction is finalized. It details the anticipated costs and terms of a sale, allowing the buyer to see the full scope of the transaction in advance. Often referred to as an “estimate” or “pre-invoice,” a proforma invoice outlines the price, quantity, and specifications of goods or services, as well as shipping details if applicable.
Alternative terms for a proforma invoice include “sales quote” or “preliminary invoice,” as it is issued before the final invoice and is not intended for payment purposes.
The main purpose of a proforma invoice is to give the buyer an accurate estimate of the transaction, enabling them to review the terms and conditions before committing to the purchase. It is commonly used in international trade to declare the value of goods for customs or to secure financing for the buyer.
A proforma invoice can be used in the following situations:
While similar in appearance, a proforma invoice and a final invoice serve different purposes:
A proforma invoice typically includes the following details:
Creating a proforma invoice is straightforward with the right tools. You can generate a proforma invoice easily with our software, which includes customizable templates and ensures all necessary details are covered. Alternatively, our team of accountants can create proforma invoices tailored to your needs, streamlining the process and ensuring accuracy.
Using SOL’s invoicing tools, you can manage your transactions efficiently and maintain clear records, helping you stay organized and compliant with international trade requirements.
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