What is pro forma invoice in SAP SD - Sales and Distribution?

SAP Term: pro forma invoice

• Component: SD

• Component Name: Sales and Distribution

• Description: A quotation of cost to the buyer. The pro forma invoice includes: Quantity and description of the product Price Terms of sale Incoterms Terms of payment Length of time the export price is valid Expiration date for the letter of credit Length of time needed for shipping

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• Key Concepts: 
  A pro forma invoice is a document used in SAP Sales and Distribution (SD) to provide an estimate of the cost of goods or services before they are actually sold. It is not a legally binding document, but it serves as an agreement between the buyer and seller that the goods or services will be provided at the estimated cost. 
  
  How to use it: 
  In SAP SD, pro forma invoices are created using the Pro Forma Invoice (VF01) transaction. This transaction allows users to enter the customer, material, quantity, and price information for the goods or services being sold. Once all of the information is entered, the pro forma invoice can be printed or emailed to the customer. 
  
  Tips & Tricks: 
  When creating a pro forma invoice in SAP SD, it is important to make sure that all of the information entered is accurate. This includes the customer information, material information, quantity, and price. If any of this information is incorrect, it could lead to discrepancies between the pro forma invoice and the actual invoice when it is created. 
  
  Related Information: 
  For more information on pro forma invoices in SAP SD, please refer to the SAP Help Portal (https://help.sap.com/viewer/product/SAP_ERP_SD/6.0/en-US). This resource provides detailed instructions on how to create and manage pro forma invoices in SAP SD.