When a buyer asks for a quotation the seller should always provide a pro_forma invoice. A pro_forma invoice is an invoice sent in advance of the commercial invoice, which is the final bill that the buyer agrees to pay. Some of the advantages of pro_forma invoice to the importer include to show to his government for foreign currency allocation, opening letters of credit and most importantly, to have a detailed information on the transaction that can help him plan. An accurate and professionally submitted pro forma_invoice can help buyers to make a decision and agree to the quotation.
About proforma invoice _ A Proforma invoice is an invoice provided by a supplier in advance of providing the goods or service. A quotation in the form of an invoice prepared by the seller that details items which would appear on a commercial invoice if an order results. It is more of a customs declaration form used in international trade that describes the parties involved in the shipping transaction, the goods being transported, and the value of the goods. It is the primary document to declare value for customs. It is not a true invoice, because the seller does not record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma invoice as an accounts payable.