Pro Forma Invoice

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Definition of 'Pro Forma Invoice'

A pro forma invoice is a document that estimates the cost of goods or services to be provided. It is not a legally binding document, but it can be used to help businesses get an idea of how much they will need to pay for goods or services.

Pro forma invoices are often used in international trade, as they can help to avoid misunderstandings about the cost of goods or services. They can also be used to get quotes from different suppliers.

Pro forma invoices typically include the following information:

* The name and address of the buyer and seller
* The date of the invoice
* The description of the goods or services to be provided
* The quantity of goods or services to be provided
* The unit price of the goods or services
* The total cost of the goods or services
* The terms of payment

Pro forma invoices can be used for a variety of purposes, including:

* Getting quotes from different suppliers
* Getting approval from a company's finance department
* Getting an idea of how much money a company will need to pay for goods or services
* Avoiding misunderstandings about the cost of goods or services

It is important to note that pro forma invoices are not legally binding documents. This means that the buyer is not obligated to pay the amount listed on the invoice. However, pro forma invoices can be a useful tool for businesses to get an idea of how much they will need to pay for goods or services.

Here are some additional tips for using pro forma invoices:

* Make sure that the pro forma invoice includes all of the necessary information, such as the name and address of the buyer and seller, the date of the invoice, the description of the goods or services to be provided, the quantity of goods or services to be provided, the unit price of the goods or services, the total cost of the goods or services, and the terms of payment.
* Be sure to review the pro forma invoice carefully before you sign it. Make sure that you understand all of the terms and conditions.
* If you have any questions about the pro forma invoice, be sure to contact the seller before you sign it.

Pro forma invoices can be a useful tool for businesses to get an idea of how much they will need to pay for goods or services. However, it is important to remember that pro forma invoices are not legally binding documents.

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