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.
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.
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