Most customers/buyers use these for the internal purchase approval process. The proforma invoice is sent to inform the customer/buyer of the value of the products and/or services they purchase to ensure a smooth delivery. It usually includes details about shipping, packaging, delivery fees, and any tax and related shipping costs. Proforma invoices are also used in international shipping, especially for customs purposes on imports.
It helps declare the value of the product(s) being shipped so that it can pass through customs swiftly and be delivered to the customer/buyers on time. The purpose of a proforma invoice is to ensure that both you and the customer/buyer agree on the terms and conditions of the sale/purchase, including the total cost of the products/services. Other uses of a proforma invoice include: To declare the value of goods It are reasonable faith estimates that help the customer/buyers understand what they are paying for. Once the proforma has been sent and the customer/buyer agrees on the price, the goods and/or services can then be sent or performed. Proforma invoices are usually sent out to help in the sales process. The charges included are usually subject to change. Although it contains the exact cost associated with the product’s shipping (s), it is not usually considered a demand for payment. For example, an institution may decide to send a proforma invoice before shipping a product. Proforma invoices are very important as they help ensure a smooth sales process by eliminating any queries that may arise as the terms of the sale are set and agreed upon upfront. Although they are binding in nature, the terms of the sale included are usually subject to change. These are usually used in international transactions, majorly for customs and imports purposes.
The proforma invoice typically contains the date of issue, the quantity and description of the goods and or services being sold, shipment weight, shipment/transportation charges (if any), any taxes or fees, and finally the total amount payable.Ī proforma invoice also referred to as a pre-estimate or an off-set quote, is simply a document that accurately states the goods or services to be provided and the agreed-upon price for such goods or services. A Proforma Invoice is a preliminary bill of sale sent to a customer/buyer in advance of delivery of goods or a shipment, i.e., before work is completed or a required action is completed.
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