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What do you mean by the term Proforma invoice?
Performa is an incomplete invoice that doesn’t have any number invoice number as the invoice number is required to proceed. You can say that it’s just an estimate that outlines the goods and services that the seller commits to provide to its customer. This is used to ensure the customers that yes, this is an agreement between us that you will receive so and so products or services. The customer receives performa a week before actually receiving the delivery of their order. So, if your customer also asks you for an estimate of the product’s quantity and price, then you can share the performa with them.
Uses of Performa:
• Declaration of products and services to avoid any future dispute.
• Ideal for providing enough details to the customers.
• It can also be used to get approval from customers with an estimate.
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