---
title: "Pro forma invoice: definition | Rex glossary"
description: "A preliminary bill sent before goods ship or work starts, showing the expected charges. It isn't a demand for payment and isn't recorded as a receivable."
canonical: https://www.rex.inc/glossary/pro-forma-invoice
---

# Pro forma invoice

A preliminary bill sent before goods ship or work starts, showing the expected charges. It isn't a demand for payment and isn't recorded as a receivable.

Pro forma invoices are common in international trade, where the buyer needs a document to arrange financing or import paperwork, and for orders that require prepayment.

Because nothing is owed yet, a pro forma doesn't post to accounts receivable. Once the order ships, a commercial invoice replaces it.

## Related terms

- [Invoice A document a seller issues to request payment, listing what was delivered, the amount owed, the payment terms and the due date.](https://www.rex.inc/resources/glossary/what-is-an-invoice)
- [Purchase order (PO) A buyer-issued document authorizing a purchase at agreed quantities and prices. Many buyers won't pay an invoice that doesn't reference a valid PO.](https://www.rex.inc/glossary/purchase-order)

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