Pro forma invoice

Updated: Aug 20, 2021

Where a vendor requires payment before delivery of goods, he issues to the prospective purchaser a pro forma invoice giving details of the payment necessary to obtain them. This will be the selling price of the goods plus, where applicable, additional charges for postage and packing or, in some industries, surcharges applicable to small orders. In trading situations, the pro forma invoice will also show the trade discount that is applicable.

Reference: The Penguin Business Dictionary , 3rd edt.

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