The essentials
Everything worth knowing about a proforma invoice.
What is a proforma invoice?
A proforma invoice is a preliminary invoice sent before a sale is completed. It tells the buyer exactly what they will be billed - goods, quantities, prices, shipping and terms - but it is not a demand for payment and is not recorded as revenue in your accounts.
Businesses use proforma invoices to request advance or deposit payments, to help buyers obtain import licences, letters of credit or foreign-exchange approval, and to declare value to customs before the final commercial invoice is issued. Read our guide: What is a proforma invoice?