What Is Proforma Invoice? When Proforma Account Is Prepared?

What is Proforma Invoice? Meaning

Proforma invoice is sent yesteryear a seller to the buyer earlier receiving the order. At times, the buyer may similar to know the exact sum which he would convey to pay inward illustration he places an order. He would asking the seller to arrive at him a clear sentiment almost the payment. In such a case, the seller prepares an account as well as sends it to the buyer. Such account is called Proforma Invoice.

When Proforma Invoice is Prepared?

Proforma Invoice is prepared entirely nether surely next circumstances :-

1. When the prospective buyer is interested inward knowing the exact sum of expenditure for purchasing goods.
2. When the seller is interested inward receiving the payment earlier the delivery of goods.
3. When the goods are sent to the agent nether consignment sale, to enable the consignee to know the cost below which the goods should non endure sold.
4. In illustration of unusual merchandise to enable the importer to pay the customs duty based on a proforma invoice.
5. In illustration of goods sold on an blessing or furnish basis.
6. In illustration a prospective buyer asks for it.
7. When a novel trader or a trader selling novel products wants to inform the prospective buyers almost cost of goods.