What Is Proforma Invoice? When Proforma Regime Annotation 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 total which he would bring to pay inwards illustration he places an order. He would asking the seller to laissez passer him a clear reckon nearly the payment. In such a case, the seller prepares an account together with sends it to the buyer. Such account is called Proforma Invoice.

When Proforma Invoice is Prepared?

Proforma Invoice is prepared exclusively nether for certain next circumstances :-

1. When the prospective buyer is interested inwards knowing the exact total of expenditure for purchasing goods.
2. When the seller is interested inwards 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 last 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 approving or provide 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 nearly cost of goods.