What is a Proforma Invoice and When Do You Need One?

1. Definition of a Proforma Invoice

A proforma invoice is a preliminary bill sent before goods or services are delivered. It estimates cost, shipping, and customs details.

2. Proforma vs. Commercial Invoice

Unlike a commercial invoice, a proforma is not a formal payment request and is not logged in accounts receivable. It is used to get importing approval or advance deposits.

3. When to Use Proforma

Use a proforma invoice for international trade, customs declarations, or when the client requires a budget invoice for purchase order approval.