What is the purpose of proforma invoice?

By Laura S. Harris
Mar 6, 2021

Providing as precise an estimate as possible, the goal of a proforma invoice is to avoid exposing your customer to any unanticipated charges or duties. Much like an invoice, a proforma invoice is a binding commercial agreement.

How do proforma invoices work?

Pro forma invoices are sent to buyers ahead of a shipment or delivery of goods or services. Most pro forma invoices provide the buyer with a precise sale price. A pro forma invoice requires only enough information to allow customs to determine the duties needed from a general examination of the included goods.7 Jul 2020

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References

• sumup.co.uk (Mar 17, 2021) What is a proforma invoice and how do I use it? - SumUp
• www.investopedia.com (Mar 17, 2021) Pro Forma Invoice Definition - Investopedia