The Proforma Invoice and Its Value in Export Sales
Originally published: March 2012
What exactly is a proforma invoice?The term pro forma is Latin for “as a matter of form”. Its meaning varies depending on the purpose and field in which it is used. It can be applied to practices performed or documents issued as a pure formality, as well as those that are intended to satisfy minimum requirements, or to conform to a specific convention or doctrine.
A pro forma (or proforma) invoice is a comprehensive price quotation or offer to sell, presented in invoice format. It is typically used in product sales transactions where more information is required than is ordinarily included in a simple quote. The proforma invoice is often used in international transactions, where it is especially valuable.