Businesses these days follow a common practice of sharing a Proforma Invoice before issuing the sales invoice. A proforma invoice allows the buyer to take a look at the deal and understand the terms.

Generally, a proforma invoice includes all the details related to the transaction such as---item description, quantity, rate, payment terms and mode of payment, date of delivery, and so on. Based on this invoice, the buyer can easily make the decision of going forward with the said sale, making any changes to the proposed invoice, or cancelling the deal. This will also allow the seller to take internal decisions accordingly.