Importers issue Purchase Orders (PO) as a formal procedure to state their intention to buy certain products, according to the terms specified in the PO. The supplier should then counter by issuing a Proforma Invoice (PI), stating their intention to sell the products to you according to the terms stated in the PI.
While this may sound like an outdated formality, understanding the Purchase Order and Proforma Invoice issuing process can help avoid severe misunderstandings – leading to quality issues, receiving the wrong product or delays.
In this guide, you will learn what every importer should know about the following:
- What is a Purchase Order?
- What do I need to include in my Purchase Order?
- How do I submit the purchase order to the factory?
- Do I need to submit a Purchase Order before each production run?
- Why do I need a Proforma Invoice from the factory?
- What kind of information should the Proforma Invoice include?
- How do I avoid payment fraud?
- What is the difference between a Proforma Invoice and a Commercial Invoice?
- Can I use the Proforma Invoice as proof of importation value?
In addition, we also provide sample invoice documents:
- Purchase Order Sample
- Proforma Invoice Sample
- Commercial Invoice Sample