A proforma invoice is a preliminary bill or estimated invoice that is used to request payment from a committed buyer for goods or services prior to delivery. The proforma invoice contains a description of the goods, the total amount due and other details of the transaction. It is essentially a “good faith” agreement between the seller and the customer, so the buyer knows in advance what to expect. For example, if payment in advance is required to secure financing before goods or services are produced, a proforma can be used to outline the details of the upcoming transaction.
A proforma invoice is not an accounting or tax document