What is a Proforma Invoice?
A type of invoice meaning pre-invoice, which can also be considered as a quotation depending on the work to be carried out, is called a proforma invoice. When a proforma invoice is issued, neither the provision of a service nor the shipment of goods is expected in return, and no payment is requested. This type of invoice, which generally includes the necessary information for export and import transactions, is used in foreign trade to present an offer or to manage business processes more efficiently. In short, although it is not a mandatory invoice like a commercial invoice, the proforma invoice is an important document, especially in cases such as sending samples abroad.
PURPOSE OF THE PROFORMA INVOICE
A proforma invoice has no financial or legal obligation. Nevertheless, its main purpose is to serve as a preliminary invoice at the offer stage of a sales agreement to be concluded between the seller and the buyer. This type of invoice, issued by the seller for the buyer, includes information such as the date, type of goods, value of the goods, price, price in foreign currency, delivery method, loading date and transportation details, payment method, GTIP code, as well as the contact and address details of both the seller and the buyer. A proforma invoice does not replace a commercial invoice and is issued for informational purposes only.
FEATURES OF THE PROFORMA INVOICE
Different sales methods may be used while conducting commercial transactions. Accordingly, many documents can be issued to simplify and speed up the commercial process between the seller and the buyer. Especially in the global market, since accelerating foreign trade processes is very important for the parties, preparing a proforma invoice is a preferred method. Although it is not subject to any procedures determined by the Ministry of Finance, the proforma invoice is widely used in world trade because it serves as a quotation and acts as a preliminary document that outlines the conditions of the service to be provided, as well as the quantities and pricing under which the product will be offered for sale.
The phrase “proforma invoice” must обязательно appear on the document. Companies can obtain proforma invoices by having them printed at printing houses, or they can also create them directly by writing “proforma invoice document” on company letterhead. In commercial law, once a commercial invoice is issued, payment is expected in return for the sale of goods or services. However, for a proforma invoice, there is no such official expectation.
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