A proforma invoice is a preliminary invoice that a seller sends a buyer before confirming a sale. In Latin, pro forma means “for the sake of form.” This implies that a proforma invoice is only a provisional document and will eventually be followed up with an official document.
The proforma invoice highlights information such as the goods or services to be delivered, their prices and quantity, shipping information, and delivery date.
The buyer can choose to approve or reject the proforma invoice based on their satisfaction.
On receiving a green signal from the buyer, the seller proceeds to send an official sales invoice and starts working towards fulfilling their part of the deal—manufacturing the products or providing the service.
Learn more about proforma invoices with examples.
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