What is a proforma invoice?Ī proforma invoice is a preliminary invoice that is sent to a buyer before a sale is confirmed. This article aims to explain the meaning of proforma invoices using examples, demonstrate their uses, and demystify the differences between a proforma invoice and an invoice. Although proforma invoices are widely used, it is easy to confuse them with regular invoices. ![]() Pro forma in Latin stands for ‘for the sake of form,’ implying that it is only a provisional document and will eventually be followed up with an official document. This document also acts as a tentative agreement and is called the proforma invoice. Once this negotiation is over, it is good practice for the business to send a preliminary draft of the invoice to the buyer showing the agreed-upon deliverables. ![]() Before shaking hands on a deal, businesses often negotiate about the terms of the deal such as the selling price, discounts, and delivery dates.
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