How to create a Proforma Invoice and Purchase Order Documents

Share on facebook
Share on twitter
Share on linkedin
Template of a Proforma Invoice and Purchase Order document

Learn how a Proforma Invoice and Purchase Order documents work in Global Trade.

What is a Proforma Invoice?

First, a Proforma Invoice document is an important document that the seller of goods creates.  When they buyer and seller have communicated the details of the products they want to order, the seller will create a Proforma Invoice document to to confirm the new order.  This document is usually created after a quotation has been sent and when the sales process is moving closer to a confirmed deal.  It must clearly include all product details, quantities, pricing and delivery information as agreed between the buyer and seller.  The Proforma invoice will include the seller’s bank details so that the buyer can arrange payments as required.

Read the difference between a Proforma Invoice and a Commercial Invoice here.

How to Create a Proforma Invoice Document for Export

What is a Purchase Order?

A Purchase Order is the buyer’s official company document that states all of the details of the company’s new order of goods.  The buyer will issue a Purchase Order document to the seller’s company, the seller will confirm the new order with a Proforma Invoice document.  They can be issued in any order.

How to Create a Purchase Order Document for imported goods.

How does a Proforma Invoice work with a Purchase Order?

Purchase Order documents are issued hand in hand.  These are important documents that are used to officially confirm all order and product information to avoid any confusion or problems with the supply and delivery of products.  Any additional information agreed between the buyer and seller can be included on these documents.

Countersigning Proforma Invoice and Purchase Order Documents

Both parties will have to counter sign each document as they represent a legally binding agreement between the buyer and seller.  If there are any disputes relating to the order or supply of goods, these documents will be referred to in a court of law.  Read how importers and exporters digitally countersign Proforma Invoices, Purchase Orders and other Sales Contracts.

 

Do you need a digital company stamp or seal to allow you to sign documents online?

Sign in to IncoDocs to use our automatic stamp seal generator.  This will give you a digital version of your company seal to allow you to go paperless.

 

What information is included on Purchase Order and Proforma Invoice documents?

  • Seller’s company name, address and contact details
  • Buyer’s company name, address and contact details
  • Method of Dispatch – Road, Rail, Air or Seafreight
  • Type of shipment – FCL, LCL, Breakbulk or other
  • Port of Loading and Port of Discharge (seaport or airport)
  • Reference Number and Date
  • Product Descriptions – including item codes, product descriptions, Unit Quantity, Unit Type, Price
  • IncoTerm – The selling term agreed
  • Any additional information (usually payment terms, lead times or estimated vessel details)
  • Bank Details – the Proforma Invoice can include bank details requesting the buyer to make a payment
  • Name, date and signature of authorized company representative
  • See below examples of Proforma Invoice and Purchase Order templates for global trade:

    A seller’s Proforma Invoice and a buyer’s Purchase Order document made using IncoDocs

    Are you involved in Global Trade?

    Our team created IncoDocs to make global trade easy.  We’re proud to allow companies in over 100 countries to streamline their Proforma Invoice and Purchase Order process.  Try it for yourself today.   If you need more information speak to one of our trade specialists, we will be happy to answer any of your questions.
    Share on facebook
    Share on twitter
    Share on linkedin

    Get the latest Global Trade news and tips

    Subscribe to receive Global Trade articles articles, news and more.

    Try IncoDocs Now.

    Get started for free, upgrade when you are ready.