A Pro Forma Invoice is one of the few most common types of business documents. The term ‘pro forma’ is a Latin word which actually means ‘as a matter of form’. This means that the document is usually issued for formality purposes where it is commonly adopted as one of the standard operating procedures involved in the buying and selling of goods and services.
A pro forma invoice is basically an ‘estimated’ invoice which is sent in advance to the buyer. The seller will issue this invoice in advance and is usually done so for specific purposes. The seller will issue a pro forma invoice in advance of a shipment or delivery of products or services. The pro forma invoice is totally different from a normal invoice which is issued to demand for payment. Pro forma invoices are issued to state the value of the goods which is very useful for custom clearance purposes. When a seller sends out a product, they will first prepare a pro forma invoice which states very clearly the value of the goods that include quantity, weight and any other related information before it is sent through the customs to fulfill the required legal regulations which might be applicable.