Proforma Invoice
What is Proforma Invoice?
A Proforma Invoice is a preliminary bill that is sent to the buyer before the actual goods or services are delivered. It serves as a quotation, providing detailed information about the products or services, including their description, quantity, price, and terms of sale. Unlike a regular invoice, a Proforma Invoice is not a request for payment, but rather a document that helps both the buyer and the seller to understand the costs involved and agree upon the terms of the transaction. It acts as a binding agreement and can be used for various purposes, such as applying for a letter of credit or obtaining customs clearance for export or import.
What are the types of Proforma Invoice?
Proforma Invoices can be classified into different types based on their purpose and the type of transaction. Some common types include: 1. Commercial Proforma Invoice: This type of Proforma Invoice is used in regular commercial transactions and includes all the necessary details of the goods or services being sold. 2. Export Proforma Invoice: This type of Proforma Invoice is specifically used for export transactions and includes any additional information required for customs or international shipping. 3. Service Proforma Invoice: Service-based businesses often use this type of Proforma Invoice to provide a detailed breakdown of the services to be provided and their associated costs. 4. Proforma Invoice for Customs: This type of Proforma Invoice is used in international trade to help determine the customs duties and taxes that may be applied to the goods being imported or exported. These are just a few examples, and the type of Proforma Invoice required may vary depending on the specific circumstances of the transaction.
How to complete Proforma Invoice
Completing a Proforma Invoice may seem daunting, but with the right guidance, it can be a straightforward process. Here are the steps to follow:
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