A pro forma invoice is a form of invoice that is sent to buyers ahead of a shipment or delivery of goods or services as an estimate of the final invoice. It is not a legally binding document, but its purpose is to give buyers a preliminary cost estimation of the goods or services they are buying, and outline the payment details such as payment method, payment period, and any discounts that may be applied. It is an essential document used in international trading.

A pro forma invoice is generally the form of invoice that is sent to a buyer before the actual shipment of goods and services. The invoice includes all products and services that are presented in the shipment and the agreed upon payment terms between the buyer and the seller. The purpose of the pro forma invoice is to provide the buyer with a precise sale price and show them a breakdown of the price. The invoice also provides a guide for a future agreement and permits the buyer to make provisions before the transaction.

Unlike standard invoices, a pro forma invoice does not require any specific information, however there are some general items that should be included, such as:

The buyer’s contact information The seller’s contact information The description of the goods or services offered The total quantity, weight, and price of each item The total cost of the shipment The payment terms Any applicable taxes or duties The delivery date

A Pro Forma Invoice does not have to include certain details such as the name of the buyer, the bill-to address, or any invoicing details such as invoice numbers. In addition, it does not require any signature or signature line. Customs generally don’t need these details to determine the duties required from a general examination of the included goods.

The primary purpose of a pro forma invoice is to act as a way for buyers to obtain a rough quote of their cost at a given time. This document is often used when dealing with international buyers, as a way of setting the terms of sale, and letting the buyer know what they can expect to pay once the deal is completed. Pro forma invoices can also be used by sellers to provide buyers with a rough cost estimate in order to better negotiate and come to an agreement on prices.

In conclusion, a pro forma invoice is an essential document used in international trading. It is a form of invoice that is sent to buyers ahead of a shipment or delivery of goods or services that provides buyers with details about the goods and the agreed upon payment terms between the buyer and the seller. It does not need to include certain details, such as a signature, or invoice number and it does not require any specific format.