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No matter how quickly business operates in today's computer age, there are still traditional steps to making a sale that must be met. While some business deals are as simple as cash and carry or conventional invoicing, the days of the pro forma invoice are not gone. Many businesses still use these documents to communicate effectively the price, amount, and type of goods or service that is to be delivered. The seller sends the invoice complete with information pertaining to the sale, including the date to be delivered or for the service to be rendered. It is considered a good faith agreement between the two parties and is typically followed by a conventional invoice after the product or service is delivered or completed.
There are several types of businesses that use pro forma invoices regularly, such as banks, importers and exporters, and many governmental customs agencies, among others. These statements are often used as a contract between the two businesses and provide proof to each party of the others' intent; much like a formal estimate is used in other business dealings. For importers and exporters, these special invoice documents are usually required to move their products and goods out of customs, though a traditional invoice is required within 50 to 120 days following the transaction.
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