Proforma Invoice (PI) is an estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It described the types and quantity of goods, their value, and other important information such as weight and transportation charges. These invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in case of import. Proforma invoice differ from a normal invoice is not being a demand or request for payment.
Advantages to pro forma invoices too:
- Proforma Invoice can be used if you don’t have all the details for a commercial invoice
- As an extension of this, pro forma invoices are usually sent to declare the value of goods for customs for a smooth delivery process.
- They’re not a payment demand or request. Pro forma invoices are ‘good faith’ agreement so your customer knows what to expect.
- Some businesses request pro forma invoices for their internal purchasing approval process.