What is a proforma invoice?

• A proforma invoice is a document used by businesses to confirm the terms of an agreement with a customer for the supply of goods or services.
• It provides details such as the description of what will be provided, the price, payment terms, and other relevant transaction information.
• Proforma invoices are similar to quotes and are not legally binding, but they can have legal consequences once accepted.
• They are typically used when a tentative agreement has been made but a deal has not been finalized.
• Proforma invoices are not mandatory and do not have fiscal validity like actual invoices.
• They are different from invoices and quotes, as invoices are legally binding documents requesting payment, while quotes simply confirm the price of goods or services.

Source Invopop

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