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Sales · Definition

Proforma Invoice

A preliminary invoice issued before supply, often to secure payment or clear customs.

A proforma invoice looks like an invoice but creates no accounting entry. It is issued so a buyer can arrange payment, open a letter of credit, obtain import approvals or process a prepayment.

Because it is not a tax document, it must not be treated as one. The tax invoice is raised separately when supply actually occurs.

Also called

  • pro forma
  • PI

Related terms

Invoice

A seller’s itemised request for payment for goods or services.

Quotation

A seller’s formal offer of prices and terms to a prospective buyer.

Import Declaration Form

IDF

A pre-shipment import authorisation required in Kenya and similar regimes.

Deferred Revenue

Money received before the goods or services have been delivered.

More in Sales

Average Order Value (AOV) Churn Rate Credit Limit Customer 360 Customer Lifetime Value (CLV) Delivery Note Order-to-Cash (O2C) Point of Sale (POS)

Proforma Invoice is not just a definition here

Sales runs on this vocabulary every day in AWRA OpsHub — 14 of our 257 glossary terms describe things the platform actually does.

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