A proforma invoice is a preliminary sales invoice that a seller provides to a buyer before the sale of goods is completed. It acts as a quote for the goods and contains details such as product description, quantity, unit price, and total cost, but is not a legally binding document. It is often used for international trade transactions and customs purposes, where the buyer needs to have an estimated invoice for customs purposes before the goods are shipped.
A proforma invoice is not a substitute for a commercial invoice, which is a legally binding document that contains the actual details of the sale, and is used for accounting, customs and tax purposes.