A proforma invoice, also known as a commercial invoice, is a preliminary document used in international trade to provide buyers with an overview of the goods being ordered, along with their costs and payment terms. It serves as a non-binding agreement between the buyer and seller, outlining the details of the transaction.
Proforma invoices play a critical role in facilitating global commerce by establishing a clear understanding of the terms of sale. They are particularly relevant in situations where the buyer and seller are based in different countries, as they provide a means of confirming the order details and facilitating payment.
