Your potential buyer before confirming the deal asks for the following details-cost breakdowns, applicable taxes, potential discounts, product dimensions, weights, shipping costs, etc. It contains all details related to sales.Įxample: Imagine you’re a manufacturer on the about to seal a deal from a buyer abroad.It is not a legally binding document and does not initiate a demand for payment or supply.It is issued before the deal is finalized but after the price is negotiated.It serves as a preliminary bill of sale, outlining the terms and details of a possible trade, estimated costs, taxes, shipping charges, weight, dimensions, and so on.Ī proforma invoice has three major characteristics. A Proforma Invoice (also Pro Forma) is a provisional document issued by a seller to a potential buyer before the sale transaction is completed.
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