This is merely a quotation giving the estimated cost of the goods or service.
This is not a supporting document and it has to be followed by an invoice.
Where a good policy for procurement of goods and services exists, a quotation is asked for and the cost estimate is provided by the supplier in a proforma invoice.
A good procurement policy should aim at obtaining the best goods or services at the most competitive and economic cost for the required purpose.
An organization invites quotations,bids or cost estimates and the suppliers provide such estimates through proforma invoice.
This is a credit bill.
(i.e) a bill for goods and/or services provided where the payment is yet to be made.
This by itself is not a supporting document for payment
It has to be supported by a receipt acknowledging the payment towards the invoice.
A proper invoice should contain complete particulars
(i.e) Name of the organization
Descripttion of goods and/or services provided
It should be signed
Expenditure can not be booked into accounts based on proforma invoice