Proforma?

[VenalWinfrey]

Can someone please give me a definition of the above?  The dictionary is no help at all really!  For example, a proforma invoice - is this just a guesstimate, before they can adequately say what the real thing will be?  I understand the latin root pro-forma (in place of/substitute for a form) but just can't quite fathom it!

 

Thanks.

[scrambler]

A proforma invoice is an invoice submitted for payment before delivery of goods or services, (full cost normally) where the buyers payment history is poor, or credit and bank details can't be supplied

[Hgrove]

Following on from the above, after you have paid and they have sent the goods, usually they then follow on with the "firm" invoice;  the "real" invoice.  In my job we sometimes have to pay on a pro forma, usually if it is a one-off order from a supplier we do not have an account with - where it's not worth the trouble opening full credit facilities because we're not likely to use them again; it's a real pain because you must be careful not to pay the invoice after you have paid the pro forma.  They should really mark the "firm" invoice "for confirmation only; already paid" but they don't always.

[Bangkok]

Pro Forma invoices can also be used when the final price is not known but an invoice is needed for legal reasons (e.g. cross border movements, although Customs may not accept it without confirmation of why it is being used)