#Proforma invoices templates pro

For the sake of custom clearance, in case of cross-border transactions.Internal document kept by the sales department to keep track of future transactions.Accurate price fix to prevent the buyer from any hidden charges/fees.Confirmation of intent to sell for the buyer, and vice versa.The proforma invoice is raised to achieve the following objectives: For instance, in case of a custom order, the seller may choose to issue a proforma invoice to the buyer stating the terms of the transaction and proceed with fulfilling the order.Ī proforma invoice usually has a pretty accurate fix on the price, including commissions, fees, or taxes (if any), to prevent the buyer from any unexpected price change shocks once the transaction is completed. What are the Objectives of a Proforma Invoice?Īs mentioned earlier, a proforma invoice is issued by the selling entity to the buyers before the transaction is complete. (differences between proforma invoice and quotations are listed in detail below). It is merely a gesture, and good business practice, and not a proof of transaction, request for payment, and is a follow up to the agreed quotations. It is merely a good-faith gesture by the selling entity.Ī proforma invoice cannot be used for accounting purposes. However, this does not mean that the terms mentioned in the proforma invoice are final.

#Proforma invoices templates pro

Proforma is derived from Latin words Pro - which roughly translates to ‘for the sake of’ and Forma, which translates to ‘form or appearance.’ A proforma invoice for advance payment, therefore, provides the buyer with an accurate price on the current transaction and helps avoid confusion or negotiations after the details of the transaction have been agreed upon. What are the objectives of a proforma invoice?.Whenever the word - proforma is used, it indicates that the document is just for the sake of form, or convention, and isn’t enforceable. A proforma invoice can be referred to as an initial bill of sale shared with the buyers in advance, prior to delivery of goods or services, indicating a seller's intent to complete the sale.