What is a Proforma Invoice? How is it Prepared and What Does it Mean?

A proforma invoice is a formal document that is prepared and presented to the customer before the delivery of goods. This invoice indicates that the payment for the goods has not been made yet. A proforma invoice is usually printed on letterhead paper and contains certain information. This information includes the document number and date of preparation in the top right corner, the name, surname, and company name of the buyer and seller in the top left corner, and the detailed information of the goods purchased by the customer from the company in the middle of the invoice.