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.

Invoice