Pro Forma Invoice Key Terms

Basic key terms for a pro forma invoice
By J. Stoltzfus, writer/programmer LOCAL CITIZEN The document that's called a "pro forma invoice" often serves as a kind of marker for helping a buyer and a seller to be clear about the payment expected for a shipment of goods. The pro forma invoice can be sent ahead of the shipment to let the buyer see how the goods are valued. Knowing about some of the basic terms on a pro forma invoice helps business decision makers to deal with a wide range of transactions including international shipments.

Template

A template is a sample of any business document that can be changed and specialized to make it relevant to a specific business transaction. Templates are very helpful for pro forma invoices to help business leaders approach the style and functionality they would like for these documents.
Try:  Find templates of pro forma invoices and other documents at DocStoc, where business leaders can browse through samples of legal and business documents to get an idea of what they need to make for their shops.

Payment terms

Payment terms or terms of payment are often included on a pro forma invoice to clarify how the entire transaction will be done. Payment terms can include timelines or split payments as well as info on how the payments will be made.
Try:  Find a wealth of information about pro forma invoice payment terms and more from this page at Global Expert Base.

Quotation

A quotation is basically a statement of what kind of pricing a buyer can expect. The pro forma invoice is often called a "quotation in invoice form."
Try:  Find out about the quotation and the pro forma invoice at Unzo's Guide to Exporting. For more on formatting of quotations, try this page from Export Assistance.

Tariff classification number

This handy number is also included on a pro forma invoice. It helps define what kind of tariff is applicable to products being shipped across borders.
Try:  Find out a whole lot about the tariff classification number and the Harmonized Tariff Schedule at Fedex.

Billing software

The kind of computer program known as "billing software" can help business heads create pro forma invoices that work with their internal inventory systems and accounting practices.
Try:  For more on billing software, check out Billing Manager from Intuit.

Total cost

The total cost for all of the shipped materials and units should be included on a pro forma invoice; the more prominent this item is, the less confusing the form will be to buyers.
Try:  Look out for total cost (see page 4, number 11) and a whole lot of other factors for a pro forma invoice from pages like this FRED (Fast Resources for Enterprise Development) resource page.