Proforma Invoice
Information that should be shown on every Proforma Invoice /Quotation document given to overseas buyers:
- Your company location, address that would expect to receive payment. (If payment address not on letterhead, note "payment address" elsewhere on document.
- "Sold To" address for buyer who is negotiating the purchase and accepting sold goods.
- "Ship To" address if goods are to be shipped to different address than what is shown in "Sold To".
- Concise description of product being sold (including Schedule B number your company prefers for classification purposes, if available). If there are many items, at bottom of list show a basic description that can be used to describe the items show above (i.e. machine parts/medical equipment) "plus accessories" if separate, different items are also included.
- Complete price of goods, using correct incoterm which tells the buyer all costs the price includes. Be sure to include all costs the incoterm tells the buyer it includes so your profit margin will not be compromised. Your domestic pricing should not be used for goods to be shipped to an overseas location as there are costs incurred packing and shipping to overseas locations that are not incurred for sales delivered within your country. Contact my office if you need assistance in choosing an incoterm and covering all costs to keep your profit margin intact.
- Correct country of origin (where goods were manufactured). If your company is not the manufacturer, make sure you have on record from the vendor your company purchased from what the country of origin is. Do not guess.
- Wire payment instructions and terms of payment (30/60/90 days from date of shipment) for open account.
- If the chosen form of payment is to be by letter of credit, "company policies" (instructions) should be attached to every Proforma Invoice/Quotation document. Contact my office for "suggested company policies" if assistance is needed in this area.
- If there is a contract or purchase order involved in the sale, make sure the document is clearly understood and does not disagree with the Proforma Invoice/Quotation Document. Contact my office if assistance is needed to review any sales document for acceptance and approval.
