What's a Pro Forma Invoice?

What's a Pro Forma Invoice?

A proforma invoice is a preliminary bill or estimated invoice which is used to request payment from the committed buyer for goods or services before they are supplied. ... It is essentially a "good faith" agreement between you (the seller) and a customer so the buyer knows what to expect ahead of time.

What is the difference between a pro forma invoice and an invoice?

What Is the Difference Between an Invoice and Proforma Invoice? While an invoice is a commercial instrument that states the total amount due, the proforma invoice is a declaration by the seller to provide products and services on a specified date and time.

Should you pay a proforma invoice?

A proforma invoice is a document a business sent to the customer before the details of the sale have been finalised. It'll usually have the same format as a standard invoice, however, the document will be titled 'proforma invoice'. ... A customer is not legally required to pay the amount on a proforma invoice.

Alexander Ross
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Alexander Ross

Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.