November 22, 2009
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Proforma invoice- PIV
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The Proforma Invoice is provided to the buyer from the seller. It reflects an estimate of the amount of money that will be invoiced to the buyer after the shipment. The Proforma Invoice is based on the actual goods to be shipped, their freight charges, and any other charges that will be due to the seller.
Definition of a Proforma invoice
An abbreviated Commercial Invoice sent in advance of a shipment to describe items to be shipped and their total price including freight.
Purpose of a Proforma invoice
The purpose of the Proforma Invoice is to communicate the approximate amount of currency that must be remitted after the Purchase Order is shipped against. The approximate amount should be within 5% the actual Commercial Invoice that is planned.
The Proforma Invoice reflects the quantity of goods to be shipped and invoiced, rather than the desired amount stated in the Purchase Order. The Proforma Invoice is used by the buyer to arrange funds or lines of credit, currency exchange, and import permits for the actual importation of the goods.
Process for a Proforma invoice:
The Proforma Invoice is sent to the buyer.
Buyer in turn places a Letter of Credit for Proforma Invoice value.
| FIELDS for a Proforma Invoice: | |
| 01 FROM (SELLER) | Seller providing the Goods and Services |
| 02 TO (BUYER) | Buyer to be Invoiced |
| 03 BILL TO | Account to be Invoice |
| 04
SHIP TO (ADDRESS) |
Address for goods to be shipped to |
| 05 NUMBER | Assigned number for reference |
| 06 DATE | Date issued |
| 07 POR REFERENCE | Purchase Order reference |
| 08 TERMS OF SALE | Letter of Credit, Direct Collection; Advance Payment |
| 09 SHIP VIA | Ocean, Air, Rail or Truck |
| 10 INCOTERM | FOB; CFR; or CIF |
| 11 LC NO. | Letter of Credit number |
| 12 SHIP FM | Ship From commercial port |
| 13 SHIP TO | Ship To commercial port |
| 14 - - | blank |
| 15 ITEM NO. | Goods Item Number |
| 16 DESCRIPTION | Goods description |
| 17 UOM | Unit of Measure |
| 18 QUANTITY | Quantity of Unit of Measure |
| 19 UNIT VALUE | Unit value in USD currency |
| 20 AMOUNT | QUANTITY X UNIT VALUE = AMOUNT |
| 21 UBTOTAL | Total value of items |
| 22 TAX | Total TAX ON SUBTOTAL |
| 23 FREIGHT | Freight based on INCOTERM |
| 24 TOTAL | Total amount to be paid by Buyer |
| 25 USD$ | Amount in USD $ Dollars |
| 26 AUTHORIZED SIGNATURE |
Authorized Signature of Seller |
| 27 REMARKS | Remarks |