• Many a times, particularly in Export-Import business, before sending the goods, the seller sends an abridged or estimated version of the invoice. This is called a pro-forma invoice.
• It is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods.
• Sometimes, it is used as an alternative to a quotation also.
• The difference between a quotation and a pro-forma invoice is that a pro-forma invoice is a binding agreement.
• It contains almost all information like a regular invoice and some packing information like weight, number of bundles etc.
• Pro-forma invoice is also used by the importer for customs purpose while importing.
• The main difference between a regular invoice and a pro-forma invoice is that a normal invoice is a demand for payment. It is to be accounted. The pro-forma invoice is not a demand for payment, and it is only a binding confirmation of the details mentioned. It has to be followed by a formal invoice.
(Expert advice to GROW your business wherever you are, whenever you want.
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