In foreign trade, a pro forma invoice is a financial document that states commitment from the seller to provide specified goods to the buyer at specific prices and term and conditions. It is often used to declare value for customs. Basically, it is not a true invoice, because the seller does not record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma invoice as an accounts payable. A pro forma invoice is not issued by the seller until the seller and buyer have agreed to the terms of the order. But, many suppliers are misunderstood the term of “pro forma invoice” with sales invoice. Where it is used to obtain advance payments from buyer, either for start of production or for security of the goods produced. But, as long as both seller and buyer understand the meaning of this document, there is no reason why the transaction cannot be completed. It is just a term.
This invoice template below is created based on commercial invoice template that has been simplified by eliminating some shipping and export terms if you plan to use it for obtaining payment.
Proforma Invoice (15.9 KiB, 2,459 hits)