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An Overview on Proforma Invoice Template

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Invoice Office
An Overview on Proforma Invoice Template

A pro forma invoice is different than the original or final invoice but is quite important in the modern business world. It can be explained as a preliminary bill regarding any sales done and items purchased. It contains other information regarding charges such as carriage and shipment charges, VAT charged, etc. if you’re a business person, then you already know the uses of Proforma invoices. The world cannot simply operate without the proforma invoices it can be used in cases when an original invoice cannot be generated and a particular vendor needs payment before even issuing an invoice, then a proforma invoice comes in handy.

What is the process of issuing proforma invoices?

Such a document is issued even before the goods are delivered. The payee allows only recurring vendors to issue such documents asking for payment for goods. The customer, who is paying for the goods should agree to the price and the amount (quantity) of goods mentioned in the pro forma document.

What are the purposes for issuing pro forma invoices?

A pro forma invoice is a preliminary document that acts as a bill of sale which is issued even before the goods have been actually shipped to the buyer. There is a final invoice that is again sent to the buyer post the payment for the pro forma one. This is one of the most important means of doing business and benefits the whole sellers for keeping the business going. A pro forma invoice can never be considered as confirmation for sale of goods. The below points will highlight the main purposes of pro forma invoices.

  1. It is issued to the consumer of goods for ensuring smooth delivery.
  2. There are times when a number of details are required for a commercial invoice. When such details are missing, the pro forma invoice get the job done.
  3. There are clients that use it for internal purchase approval processes as well.
  4. The main uses of pro forma invoices are in the sales and transport sector businesses.

What is the template for pro forma invoices?

A sales quotation and pro forma invoices are almost the same but both of them serve different purposes. The statement/document starts with PROFORMA written on the letterhead portion along with the company and billing entity name on the left and side of the document. The shipping address usually remains on the right side of the document. Then the amount and description along with per unit price are provided on the body of the invoice and the total value or gross amount along with VAT charged (if any) is provided there.

One thing that is different between pro forma invoices and other pre-payment request documents is that they contain the conditions of sale and the agreement. Some pro forma invoices are issued with the country of origin of the services or goods, along with the date of shipping and company name. The Invoice Office can assist you in making and issuing a pro forma invoice in no time.

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