What is a proforma invoice?

A proforma invoice is a preliminary bill that a seller sends before a sale is final. It sets out exactly what will be supplied, at what price and on what terms, in the layout of an invoice, but it is not a demand for payment and does not go into the accounts. Pro forma is Latin for “as a matter of form”.

What a proforma invoice is used for

• Payment in advance. A supplier asks a new customer to pay before work starts or goods ship, and the proforma tells them exactly how much to pay.
• Imports and customs. An importer may need one to apply for an import license or a letter of credit, or to arrange foreign currency. Customs can use it to estimate duty before the commercial invoice exists. The US International Trade Administration describes it as “a quote in an invoice format”.
• Internal approval. A buyer’s purchasing team needs a firm document to raise a purchase order or get budget approval.
• Samples and free goods. When nothing is being sold, a proforma can declare the value of a shipment for customs.

Proforma invoice vs invoice vs quotation

	Quotation	Proforma invoice	Invoice
When	Early, while the buyer is deciding	Once terms are agreed, before supply	After supply, or on delivery
Purpose	Offer a price	Confirm the deal, request prepayment, support customs or financing	Request payment that is now owed
Legally a bill?	No	No	Yes
Recorded in the accounts?	No	No	Yes, in accounts receivable
Can be used to reclaim VAT or GST?	No	No	Yes, if it meets the tax rules
Numbering	Quote sequence (QT-)	Its own sequence (PF-)	The invoice sequence, unbroken

What to put on a proforma invoice

1. The title “Proforma Invoice”, so nobody mistakes it for a real bill.
2. A reference number in its own series, and the date.
3. Seller and buyer names, addresses and contacts, plus tax registration numbers where relevant.
4. Item descriptions, quantities, unit prices and line totals. For exports, add HS codes and the country of origin.
5. Taxes, discounts and the total, in a stated currency.
6. Payment terms: how much is due in advance, and how to pay.
7. Delivery terms: for international trade, an Incoterm such as FOB or CIF, plus the estimated shipping date, weight and dimensions.
8. A validity date, after which the prices may change.
9. Where VAT applies, a line saying “This is not a VAT invoice”.

How to make one, free

The Invoice Generator builds the whole document in your browser:

1. Change the Document title to PROFORMA INVOICE.
2. Change the number to your proforma series, for example PF-2026-014.
3. Set the Due Date to the date the advance payment is needed.
4. Add the items, taxes and any discount. The totals calculate as you type.
5. In Notes, add the delivery terms, the validity date and “This is not a tax invoice”.
6. Click Download PDF.

Invoice GeneratorCreate clean, professional PDF invoices with itemized totals, tax, discounts, and custom payment terms.Make a proforma invoice →

When the order ships, open the generator again, set the title back to INVOICE, give the document the next number in your real invoice sequence and send it as the final bill. If the buyer only wants an estimate at this stage, the Quotation Generator has a Valid Until field built in.

Mistakes to avoid

• Using your invoice numbering. A proforma that takes INV-0042 leaves a gap or a duplicate in the sequence your accountant and tax authority expect to be unbroken.
• Booking it as revenue. Nothing is owed until the sale happens.
• Changing prices on the final invoice without saying so. If anything changed between the proforma and the delivery, say what and why.
• Leaving out the validity date. A proforma with no expiry can be held up as a price promise months later.