A proforma invoice is a preliminary commercial document issued as a pre-invoice, containing information about the agreed-upon terms and prices between the seller and buyer. This document is used to provide complete details about the desired items, quantities, prices, payment terms, delivery times, and other conditions related to the transaction. The proforma invoice allows the buyer to conduct necessary checks before finalizing the deal and ensures that all terms agreed upon by the parties are accurately recorded in this document.
A proforma invoice is typically issued in the early stages of negotiations and before the issuance of the final invoice. It serves as an important tool in both international and domestic buying and selling processes. This document helps the buyer verify the accuracy of the information provided by the seller, while also allowing the seller to present complete details about the items and terms of the transaction to secure the buyer's satisfaction. The proforma invoice is not only legally significant but also serves as an effective communication tool between the parties involved in the transaction.