Pro Forma Invoice

A pro Forma Invoice is usually used in the following circumtances :-
01.In order to point out the prospctive buyer what he should pay in case he buys the goods.It is akin more or less a price quatation,and is used where goods were sent on approval.If goods are kept,payment ought to be made according to the pro forma invoice.
02.It is used where the buyer is unknown to the seller and the latter wants payments before the delivery of goods.The seller at first sents a pro forma invoice and request for payment delivery.
03.It is sent to the customs authorities for evaluating goods to be consigned abroad for the purpose of assessing duties.
04.It is also sent by the principal to agent who under taketo sell goods in behalf of the formr.The agents take permission of goods and do not pay until they are sold.The pro forma invoice is sent to the agent in order to enable him to know at what prices the principal wants him to sell the goods.