Invoice Notes and Terms Example for Administration that Streamline Your Business Processes

Invoice notes and terms example for Administration

hi and welcome back to our Channel today we're talking about the performa invoices so what exactly is a performa invoice let's break it down a proforma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods it's not a demand for payment but rather an estimate of the costs involved including items like shipping insurance and taxes it typically includes details such as a description of the goods the total cost terms of sale estimated shipping date payment terms unlike a regular invoice a proforma invoice does not have any accounting value it's used for various purposes including giving the buyer an understanding of the costs involved helping with Customs declarations assisting in securing financing you might wonder why not just use a regular invoice well a proforma invoice is often used when the final details of a sale haven't been confirmed yet it helps both the buyer and the seller to have a clear understanding of what to expect before finalizing the transaction imagine you're buying Machinery from A supplier overseas before you make the purchase the supplier sends you a proforma invoice outlining the costs shipping details and terms this document helps you decide if the deal meets your budget and needs to sum it up a proforma invoice is a useful tool in international trade and various other transactions it sets clear expectations and helps avoid any surprises down the line thanks for watching if you found this video helpful give it a thumbs up and subscribe to our channel for more business insights see you next time