fbpx

Speed Commerce

What Is a Pro Forma Invoice?

3PL Glossary > Pro Forma Invoice

Pro Forma Invoice Definition | TLDR

A pro forma invoice is a preliminary document issued by a seller to a buyer before the actual sale or shipment of goods, providing details such as product descriptions, quantities, prices, and terms of sale for reference or negotiation purposes. It is not a legally binding document like a commercial invoice.

Pro Forma Invoice Meaning

A pro forma invoice is a preliminary bill of sale sent by a seller to a buyer before the actual shipment of goods or the provision of services. It serves as a formal document outlining the terms and conditions of a potential transaction between the two parties. While a pro forma invoice resembles a regular invoice, it is not a demand for payment. Instead, it provides the buyer with an estimate of the costs associated with the purchase, including the price of goods or services, shipping charges, and any applicable taxes or fees.

How does the use of a Pro Forma Invoice benefit international trade transactions, and what key information should it include?

Let's Get Started!

A fulfillment expert will get back to you within 1-2 business days.

What We Do

Our Solutions

Speed Commerce is a leader in eCommerce services for retailers and manufacturers. We provide outsourced services for our clients. To learn more, watch this short video. 

A pro forma invoice is a preliminary bill of sale sent by a seller to a buyer before the actual shipment of goods or the provision of services. It serves as a formal document outlining the terms and conditions of a potential transaction between the two parties. While a pro forma invoice resembles a regular invoice, it is not a demand for payment. Instead, it provides the buyer with an estimate of the costs associated with the purchase, including the price of goods or services, shipping charges, and any applicable taxes or fees.

Pro forma invoices also play a vital role in facilitating communication between buyers and sellers. By clearly outlining the terms, quantities, and specifications of the products or services, both parties can ensure that they are on the same page regarding the transaction details. This can help prevent misunderstandings and disputes down the line, contributing to smoother business transactions and fostering positive relationships between trading partners.

FAQs

No. A Pro Forma Invoice is not a legally binding document for demanding payment. It serves as a preliminary invoice issued by a seller to provide an estimate of the cost of goods or services. It is often used for customs purposes, in international trade, or as a preliminary step before issuing the final commercial invoice.

No. A Pro Forma Invoice is not intended for official accounting or tax purposes. It is a provisional document that outlines the terms of a potential sale, including the description of goods or services, quantities, and prices. For official accounting and tax purposes, a commercial invoice is typically required, which is issued upon the completion of the transaction.

No. A Pro Forma Invoice does not create an obligation for the buyer to make a payment. It is a non-binding document that provides information about the estimated costs associated with a transaction. The actual payment is typically made based on the terms outlined in the final commercial invoice, which is issued after the goods or services have been delivered.

Get Started Today!

REQUEST A QUOTE

Once your request is submitted, a fulfillment expert will get back to you within 1-2 business days.

Let's Get Started

A fulfillment expert will get back to you within 1-2 business days.