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A proforma (or pro forma) invoice is a preliminary bill of sale sent to a buyer to request payment for goods and services before they are supplied. It is an advanced total, or estimate of the total, that includes the transaction, goods, and total payment details for a sale.

Proforma invoices are not legally binding and are not counted as official sales in your accounting department. Traditional invoices confirm a purchase or sale, whereas proforma invoices are just a way to establish the terms of the sale.

Therefore, the proforma invoice may go through a number of iterations before it becomes acceptable to both the importer and exporter. Once the final proforma invoice is accepted by the buyer, it should be signed by the authorized buyer/importer and returned to the exporter.

A pro forma invoice is a preliminary document that outlines the terms of sale when an order is placed. Although it is not final, a pro forma invoice should give the buyer a clear understanding of the terms of sale, including the price, date of delivery, and any additional fees.

Proforma invoices are not legally binding and are not counted as official sales in your accounting department. Traditional invoices confirm a purchase or sale, whereas proforma invoices are just a way to establish the terms of the sale.

Invoices are for completed transactions, while pro forma invoices are preliminary and subject to adjustments. Is proforma invoice maker free? Yes, our Proforma Invoice Generator is completely free of charge.

Proforma invoices are essentially 'draft invoices', meaning they don't have the same legal importance as finalised invoices. Therefore, this means that: A customer is not legally required to pay the amount on a proforma invoice. Proforma invoices cannot be used to reclaim VAT.