Export Montana

Proforma Invoice

A proforma invoice is provided by the seller prior to the shipment of merchandise to inform the buyer of the types and quantities of goods to be sent, value of the goods, and other important specifications. A proforma invoice is a binding agreement that can protect against currency fluctuations, apply for foreign exchange, or open a letter of credit. A proforma is not a sales invoice, although it may look identical to the sales invoice. A proforma invoice includes:

  • insurance and shipping costs
  • delivery point
  • terms of payment
  • volumes and shipping weights
  • prices
  • product descriptions
  • list of requested products

Quoting the price in U.S. dollars will protect the U.S. company from risk associated with currency fluctuations. The sample proforma invoice provided indicates the typical components of a proforma invoice. While this serves as a general illustration, individuals preparing the proforma must draft the document according to the specific needs and nuances of the transaction.