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A proforma invoice (or a pro forma invoice, preliminary invoice, or simply proforma) is a preliminary bill of sale sent to a client before work is completed. Unlike a typical invoice, it's a commitment to goods or services that haven't yet been delivered.

Purpose of a Pro Forma Invoice A pro forma invoice is used by a seller to communicate to a buyer the expected costs, fees, and date of delivery for an order. This transparency can help the manufacturer avoid any misunderstandings when the order is delivered.

The simple answer is no, a payment can't be made on a proforma invoice.

Editing a proforma invoice template is straightforward. Once you have selected the proforma invoice template on the Invoice2go website, follow these steps: Open the template in whichever format you choose?pdf, excel, or word document. Customize the headers and add your company logo and contact information.

Proforma invoices are not legally binding and are not counted as official sales in your accounting department. Traditional invoices confirm a purchase or sale, whereas proforma invoices are just a way to establish the terms of the sale.

8 Essential Elements Each Invoice Must IncludeThe word Invoice.Seller's name and address, contact details and company registration number.Buyers name and address.Date: invoice issue date, payment due date, delivery date.A unique invoice reference number.More items...?Mar 21, 2018

Proforma invoice is used for the creation of sales, whereas invoice is used for confirmation of sale. Proforma invoice is provided by the seller, on the request of the buyer before the placement of the order. As opposed to invoice, which is issued by the seller to the buyer to request payment of goods delivered.

A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction. It is essentially a "good faith" agreement between you (the seller) and a customer so the buyer knows what to expect ahead of time.

Proforma invoices serve as a sort of good faith agreement between you and your customer. They are a baseline for a sale, a breakdown of the items with an accurate indication of the total amount due but you are not requesting payment.

Proforma Invoices are usually used for customs purposes only, often where unsold goods are being shipped. Commercial Invoices are usually used where sold goods are being shipped.