PI
PI — Proforma Invoice,Definition Summary: A preliminary, non-binding invoice sent by the seller to the buyer before a transaction is finalized, outlining the products, prices, and terms.
A Proforma Invoice acts as a formal quotation and a declaration of the seller’s intent to supply goods at stated prices. It typically includes product descriptions, quantities, unit prices, total value, payment terms, trade terms (Incoterms), and validity period. Buyers commonly use a PI to apply for import licenses, arrange financing, or open a Letter of Credit. It is not a demand for payment and carries no accounting obligation, but it often serves as the basis for the buyer to confirm the order and remit a deposit.