Proforma Invoice

Performa invoice is sent before goods are delivered. It outlines a precise estimate of what goods are to be delivered and price point at which they will be delivered.

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Proforma Invoice

What is a Proforma Invoice?

A proforma invoice is issued before the goods are produced or shipped. A proforma invoice confirms buyer’s purchase intent and is used by sellers’ to begin the procurement and manufacturing process. It contains provisional quantites and prices of goods.

When is a Proforma Invoice created?

A proforma invoice is created by the seller when the sale of goods are being discussed with the buyer. It is issued after the buyer has raised a purchase order. Hence, the proforma invoice contains the same quantities, prices and terms as mentioned on the purchase order. Acceptance, usually through a physical or digital signature, of a proforma invoice by the buyer indicates the seller can start procuring or manufacturing the goods.

Why is a Proforma Invoice important?

A proforma invoice in most cases is the first document created by the seller in the export process. Below are a few reasons why proforma invoice is important:

  • It acts as a ‘good faith’ agreement between the buyer and the seller since it is not a legally binding document upon which the seller can request payment from the buyer.
  • It is used to acknowledge buyer’s acceptance of the order including prices, quantites and promised date
  • It can be used to resolve any disputes that may arise after the final goods have been procured or produced
  • After a buyer signs the proforma invoice, it is used internally as a confirmation to proceed with procuring or manufacturing goods

How to create a Proforma Invoice on Cargoflip?

  1. Open Cargoflip
    Open Cargoflip and navigate to the 'Documents' section.
  2. Create a new Proforma Invoice
    Click on 'New' and select the Proforma Invoice from the dropdown menu.
  3. Fill out & customize your doc
    Fill out document info, customize document fields to your needs. If you fill it once, we will let you create multiple once with an easy autofill feature.
  4. Sign & Stamp
    Click on the signature box at the bottom of your document to create and place a digital signature then hit “Save & Quit”. On the document preview screen, click on the ‘More’ dropdown button and select “Add stamp” to place a digital stamp.
  5. Download or share
    Download or share invoices from Cargoflip in 1-click. You'll know when recipients have viewed your invoice and recipients can even add comments incase they have feedback all with just a link.
  6. 1-click create other documents
    You can create rest of the shipping documents with 1 click by autofilling the data from this doc in other docs.

What’s included on a Proforma invoice document?

Shipper: Name and address of the shipper
Consignee: Name and address of the consignee (receiving party)
Invoice Date: Date invoice was issued
Method of Shipping: This could be SEA, AIR, TRUCK or RAIL
Type of Shipment: FCL (Full Container Load), LCL (Less Than a Container Load), FTL (Full Truck Load), LTL (Less than a truck load), Air, Break Bulk
Country of Origin: Country where the goods were manufactured
Country of Destination: Country where goods will be finally delivered (Usually the country where the buyer resides)
Port of Loading and Port of Discharge: Seaport or airport in respective loading and discharge locations
Departure Date: Date of Delivery or handover (depends on the incoterms)
Incoterms: Could vary from EXW, FOB, CFR, DDP, DAP. Checkout our detailed guide on incoterms.
Product details: Product descriptions, SKU numbers, quantity, price
Bank Details: Account information including account number and sort codes to the account you would like the buyer to pay to
Additional charges and discounts: Charges could include value added services, freight or discounts your sellers are offering
Name and signature of authorized signatories