A proforma invoice is a document provided by a seller to a buyer after an order has been placed. It’s not a real invoice and can’t be used for accounting purposes; rather, it serves as a preliminary estimate of the total cost of the goods or services being ordered. Proforma invoices commonly include the cost of the goods, shipping and handling fees, taxes, and other applicable charges.
Proforma invoices are crucial when exporting goods or services internationally, as they help ensure that both the buyer and seller are clear on the terms of the sale. These documents help to avoid any misunderstandings or disputes that may arise during the import/export process. Proforma invoices play a vital role in facilitating international trade and ensuring that both parties involved are protected.
