A pro forma invoice is a provisional document sent by a seller to a buyer, outlining the products or services offered, quantities, unit prices, and total amount due. Unlike a commercial invoice, it does not represent a legal obligation to pay and is often used for estimating or informational purposes.
Pro forma invoices are highly relevant in international trade, allowing exporters to provide detailed pricing and payment terms to potential buyers. They facilitate decision-making, streamline communication, and help avoid discrepancies in final invoicing. Historically, pro forma invoices were handwritten or typed, but the advent of spreadsheet software like Microsoft Excel has made it easier to create and manage them.