What is a proforma invoice?
Updated · 2 min read
A proforma invoice is a preliminary bill that tells a buyer what they will be charged before the goods are shipped or the service is delivered. It looks like an invoice, but it is not a request for payment of a completed sale, and it is not normally recorded in your accounts or used for tax.
When is a proforma invoice used?
- Advance payment. When you need payment before you start or ship.
- International trade. Buyers may need one to arrange import licences, letters of credit or customs paperwork.
- Internal approval. A client’s purchasing team may need a document showing the exact cost before raising a purchase order.
- Estimated shipments. When final quantities or weights are not yet known.
Proforma vs invoice vs quote
| Proforma invoice | Commercial invoice | Quote | |
|---|---|---|---|
| Sent | Before delivery | After delivery or sale | Before the deal |
| Purpose | Commitment to sell at these terms | Request payment | Offer a price |
| Recorded as a sale | No | Yes | No |
| Numbering | Separate series | Main invoice sequence | Separate series |
What to include
- The title “Proforma invoice”
- A reference number from a separate series (such as PF-0001)
- Seller and buyer details
- Description, quantity and price of goods or services
- Estimated taxes, shipping and total
- Terms of sale, payment terms and validity date
- For exports: country of origin, weights and shipping terms (Incoterms)
How to create one
In the invoice generator, click the “INVOICE” title and change it to “PROFORMA INVOICE”, and use a separate number format like PF-0001. Once the deal goes ahead, start a new invoice with your normal numbering for the final bill.