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The Investors Trading Academy introduces the term "Pro Forma Invoice," which is an invoice sent by one company to another for goods before they are dispatched. This invoicing method ensures payment, particularly when companies have not previously traded. If future transactions are expected, an account may be established for credit. A pro forma invoice provides an estimated invoice detailing the goods' kind, quantity, value, weight, and transportation charges, typically used as a preliminary invoice or for customs in importation. Unlike standard invoices, pro forma invoices do not serve as a demand for payment.
