GLOSSARY

Pro Forma Invoice

An initial invoice sent by a seller to a buyer in advance of a shipment or delivery of goods.

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What is Pro Forma Invoice?

A pro forma invoice is an initial invoice that defines the terms of sale for a future transaction. It’s normally issued by a seller to a buyer before the goods or services are shipped.

A pro forma invoice includes the following information:

Invoice number: A unique ID for the invoice.
Date: The date the invoice was issued.
Seller's information: The seller's name, address, and contact information.
Buyer's information: The buyer's name, address, and contact information.
Description of goods or services: A description of the goods or services that are being sold.
Quantity: The quantity of goods or services being sold.
Unit price: The price per unit of the goods or services being sold.
Total price: The total price of the goods or services being sold.
Payment terms: The terms of payment for the goods or services being sold.

If you’re purchasing goods or services from an overseas supplier, you should ask for a pro forma invoice.

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