Pro Forma Invoices

A pro forma invoice is an invoice sent to the buyer in advance of the shipment of goods.  Typically, it describes the product, and lists the quantity and value of the shipment.  A pro forma invoice is often generated in connection with an export quotation letter.  It is sent to the buyer prior to shipment describing the product, its value, and the time of shipment of goods to be shipped.   A pro forma invoice can be used to establish the terms of payment and can enable the buyer to open a letter of credit.

Foreign buyers may request pro forma invoices. Typically, the buyer needs a pro forma invoice to get an import license. In order to do so, the issuing authority in the country of origin may require a 'pro forma' version of the invoice showing:

• The terms of sale,
• The value of the goods shipped,
• Other information that will allow the buyer to provide the information necessary to verify the intended transaction and issue an import license or permit.

A pro forma invoice will typically include:

• The name of the Consignee,
• The Place of Entry,
• The method of shipment,
• Marks and numbers,
• Quantity,
• Product description,
• Unit Price,
• Total Price,
• Expected shipment date,
• Expected delivery date,
• Payment terms.

Edited by Michael C. Dennis.