Proforma Invoice

A proforma invoice is a crucial document used to formally confirm the terms of a sale before any goods or services are delivered, or before a final, legally binding invoice is issued.

It is your opportunity to establish a clear agreement on all the details of the sale with your customer before resources are committed or the transaction is finalized.

When should you use a proforma?

Proforma invoices are ideal for situations that require formal approval or prior negotiation:

• Confirming complex orders:  Used for large, custom, or high-value orders where both parties need a formal review of the itemized costs.
• Securing internal approval:  Customers often use a proforma to secure financing, internal budget approval, or a Purchase Order (PO).
• International trade:  Often required for customs purposes to estimate duties and secure necessary import/export licenses.