proforma invoice

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An invoice sent in certain circumstances to a buyer, usually before some of the invoice details are known. For example, in commodity trading a proforma invoice may be sent to the buyer at the time of shipment, based on a notional weight, although the contract specifies that the buyer will only pay for the weight ascertained on landing the goods at the port of destination. When the missing facts are known, in this case the landed weight, a final invoice is sent.

Subjects: Accounting.

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