google.com, pub-9220471781781135, DIRECT, f08c47fec0942fa0 Several tips: August 2012

Friday, August 10, 2012

Pro-Forma Invoice or Performa Invoice


 It is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods.

 It gives a description of the purchased items, indicates the cost and important information like shipping weight and transport charges.

 Pro forma invoices are usually used for customs purposes on imports.

 A pro forma invoice varies from a normal quotation.

 It is usually considered a binding agreement whereas in a quotation, the terms of sale are subject to change.

 Pro forma invoices are used in many businesses.

 A Pro forma invoice is an invoice provided by a supplier in advance of providing the goods or service; a quotation in the form of an invoice prepared by the seller that explains items which would appear on a commercial invoice if an order results.

 Pro forma invoice mainly contains the same information of formal quotation.

 It gives the buyer most of the information about the order to effectively make arrangements. The invoices inform the buyer and the appropriate import government authorities, details of the future shipment; changes should not be made without the buyer’s consent.

 The points included in the pro forma are Seller’s name and address, Buyer’s name and address, Buyer’s reference, Items quoted, Prices of items: per unit and extended totals, Weights and dimensions of quoted products, Discounts, if applicable, Terms of sale or Inco term used (include delivery point), Terms of payment, Estimated shipping date, Validity date.

 The seller provides a pro-forma invoice, when a buyer asks for a quotation.

 The buyer may show the pro-forma invoice to the government for foreign currency allocation. An accurate and professionally submitted pro forma invoice helps a buyer to make a decision and agree to the quotation.

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