![]() In fact, the pro forma isn’t necessarily a guarantee of final costs, as prices may be subject to change. Since the pro forma is not a traditional invoice, it cannot be used for accounting purposes, nor is it a legally binding agreement. Therefore, a proforma might contain the following information: This form will list the goods and services involved in the transaction, as well as offering a price quotation that will ideally match the finalized invoice. In other words, a pro forma invoice functions as a good-faith estimate of the final costs of goods and services. From the Latin for “as a matter of form,” a pro forma invoice is intended to get all parties on the same page regarding the goods and services being rendered, as well as the price the buyer will be expected to pay. Instead, a pro forma invoice serves as a preliminary bill of sale.Ī pro forma invoice can be sent to a client before services are rendered or goods are delivered. Technically speaking, a pro forma invoice isn’t an invoice at all – at least not in the technical sense. ![]() In this article, we’ll take a deeper look at what proforma invoices include and how you can leverage them for your business. These documents reinforce your contract's terms of sale and can ensure mutual agreement between the buyer and the seller up to the time of delivery. Looking to streamline the sales process of your business? Consider implementing pro forma invoices.
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