A proforma invoice is a crucial document in the world of business. It serves as a preliminary bill of sale, outlining the details of a transaction before it is finalized. Understanding the concept of a proforma invoice is essential for anyone involved in international trade or business-to-business transactions. In this article, we will delve into the basics of proforma invoices, exploring their definition, importance, key elements, different types, and legal implications. By the end, you will have a comprehensive understanding of what a proforma invoice is and how it impacts various aspects of business.