Quotations: Definition of a Quotation and a Proforma

Find out the difference between a Quotation and a Proforma and the correct time to use each of these.

Proforma Invoices

A proforma invoice is defined as: 'An invoice that is sent in advance of goods supplied'.

Proforma invoices are often used in foreign trade as the buyer's proof of future sale when applying for import licenses and foreign exchange through government agencies.

For more information on creating and managing quotes - Read more >

Quotations or Quotes

A statement of the current price for the service or goods requested.

A quote is usually valid for a period of time, for example, 30 days, from the point of creation although companies can offer their own terms.

Quotes are converted into Invoices when they are won or accepted.

TIP: For more information on creating and managing quotes - Read more >