What is a proforma invoice?

A pro-forma invoice is a preliminary bill of sale that is sent to buyers before shipment or delivery of goods. It usually gives a description of the goods sold and indicates the cost and other important information, such as transport charges and shipping weight.

A pro-forma invoice is different from a price quotation in that it is typically considered a binding agreement. Although it is similar to a price quote, the terms of sale can be changed. Pro-forma invoices are widely used by many types of businesses. Microsoft Office and other programs have templates to use for creating pro-forma invoices.