Get a handle on Pro Forma Invoices

Get a handle on Pro Forma Invoices

In our last blog, we looked at Purchase Orders which are issued by a buyer to a supplier confirming the buyer’s intention to purchase goods or services.

Unlike a Purchase Order, a Pro Forma Invoice is issued by a supplier. The supplier promises to supply goods or services at a certain price. The Pro Forma invoice usually has an expiry date as the supplier needs the purchaser to confirm the order within a reasonable time frame.

Sometimes buyers require a Pro Forma invoice before they can issue a Purchase Order. When the goods or services are supplied, the seller still needs to issue a Sales Invoice.


Information to include on a Pro Forma Invoice

  • Date issued
  • Date expired
  • Buyer’s name and address
  • Seller’s name and address
  • Payment terms
  • List, quantity and price of goods and services to be supplied
  • Discounts (if any)
  • VAT
  • Total


Need help with Pro Forma Invoices??Contact GroForth?for details of our bookkeeping services.

Sarah Daly FCCA, Accredited EMCC Coach, MBS, BBS (Acc)

Guiding Business Owners to Navigate Growth or Exit | Partner with me to either Scale for Success or Sell for Maximum Value | Expert in both

1 年

More SME's are using Pro Forma invoices these days.

回复
Laurence Bacon

Registered letter of credit expert & Owner, Export Bureaux

1 年

Proforma invoices are more frequently used in international trade, in which case VAT does not apply, but Incoterms does. However, a quotation for business is but one of the purposes of a proforma invoice.

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