Pro Forma Invoice is a firmed bid or approved quotation or Proposed Invoice. We can treat it as a document of commitment to sell the goods / services to the buyer as per T & C agreed by both parties. It is issued before the sales / service delivery takes place. It has details such as quantities and price at which the buyer can make the purchase. Pro forma invoice is not accounted in the books of account of the company.

Invoice is the prime document of sale in any business. When buyer accepts to buy the goods / service at the specified price and quantity mentioned in the Pro Forma Invoice, the deal is then confirmed by way of an invoice. The content of the invoice is almost as pro forma invoice. However the final price / quantity may vary with the pro forma invoice as pro forma invoice is issued prior to the actual sale takes place.