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Download proforma invoice template in Microsoft Excel format.
Understanding a Proforma Invoice Form
Suppliers of goods and services often provide the buyer with a Proforma invoice as part of an order acceptance process. The buyer in turn uses the Proforma invoice to firm up payment arrangements like establishing a letter of credit etc. There are several websites that provide a Proforma invoice form and this will help you comprehend how this document is created and lay out the essential content of the document.
The commercial invoice that follows the Proforma invoice is often a replica of the Proforma invoice itself except that the commercial invoice will also carry complete shipping information and be a valid document for the purpose of creating accounting entries in the debtors/creditors ledger at the respective ends. In some instances however, a Proforma invoice also functions as a quotation itself. However, this practice is more prevalent when an ongoing relationship exists between the seller and the buyer and a quotation is no more essential to conclude the business. The purpose of a Proforma invoice form is to help you acquaint yourself with the contents and create one for your own businesses.
Proforma invoices are largely employed in transactions involving two different nations. In such situations, the importer is often required to obtain clearances from the respective governments even before the supplier can plan shipment of the goods on order. In these instances, the Proforma invoice once submitted to the buyer, cannot be altered except with the consent of the buyer. In import export transactions a Proforma invoice is therefore an important part of the documentation insisted upon by several countries around the globe. You should therefore pay special attention to the Proforma invoice form you are examining to ensure that all the information needed to raise a Proforma invoice involving cross border business is present in the particular form.
In general, a Proforma invoice form should contain the following information:-
Name, address and contact information of the parties involved, buyer’s order reference, description of goods, unit cost and total cost for each item, dimensions and weight of packages, discounts when applicable, terms of sale, payment terms, basis of delivery (FOB, CIF, C&F etc.) estimated date of shipment, Liner/vessel/carrier information, port of loading, port of discharge, validity and any other transaction specific information.
Importantly, you should also examine provisions relating to the currency in which Proforma invoices for export business is drawn up. The major international currencies accepted across the globe for international trade are the United States Dollar, the Great Britain Pound, and the Euro. However, depending on individual circumstances and subject to the approval of the governments at either end, other free float currencies such as the Canadian dollar, Australian dollar, French Francs, Japanese Yen etc. can also be considered. Some websites have the ability to provide this additional information when you are considering a Proforma invoice form.