Silk Bridge Journal

Definition

 A Proforma Invoice is a document issued by the seller before the order is fulfilled, containing the key information regarding the planned transaction. It typically specifies the details of the buyer and seller, a description of the goods, quantity, price, order value, payment terms, bank details, and the agreed Incoterms rule.

A Proforma Invoice is not a standard commercial invoice or an accounting document. Its primary purpose is to confirm the terms of the transaction and prepare the payment before the order fulfillment process begins.

Why Should Importers Know This?

 A Proforma Invoice is one of the basic documents that appears before production or shipment begins. The importer often uses it as the basis for making a deposit or full payment for the order.

Before making a bank transfer, it is important to carefully check all information contained in the document — especially the company name and details, bank account number, currency, prices, quantities, payment terms, Incoterms, and product description.

When dealing with new suppliers, particular attention should be paid to the bank details. If the account used for payment differs from the previously agreed banking information, it is advisable to additionally verify the change directly with the manufacturer.

A properly prepared Proforma Invoice helps prevent misunderstandings and provides an important reference point for both parties during the fulfillment of the order.

Related Terms

 Commercial Invoice · TT · Letter of Credit · RFQ · Deposit · Packing List · Incoterms

In Practice

Before making the first payment, the importer should carefully check the Proforma Invoice and compare it with the arrangements agreed with the manufacturer. Particular attention should be paid to the company name and details, bank details, quantity of goods, price, Incoterms, payment terms, and product description. Only after confirming that all information is correct should the bank transfer be made.