Guide
A proforma invoice: pricing an order before it ships or is paid for
Sometimes a buyer needs to see an invoice before there is anything to invoice. They may need to pay in advance, apply for an import licence, open a letter of credit or show customs what is coming. A proforma invoice does that job: it looks like an invoice and carries the prices and terms, but it is issued before the goods or services are supplied, and it is labelled so that nobody mistakes it for a bill. This page makes one as a PDF.
What it is for
A proforma is used when a buyer must act on a price before the sale is complete. A foreign buyer may need it to arrange a bank transfer or an import permit. A shipper or customs agent may want it to declare value. A customer may want it to get internal approval for a purchase. It gives them a firm, itemised statement of what they will be charged, without committing the seller to a tax invoice yet.
How the page lays it out
The title and number sit at the top, with the seller’s details and logo, the bill-to party and a grid of details below: the issue date, the validity date, the order reference and the delivery terms. The items follow, with quantity, rate and amount, then the totals. A note at the foot says the document is a proforma invoice, an estimate of the final invoice and not a demand for payment or a tax invoice. A second box holds payment details.
A worked example
Press Sample for a textile exporter in Surat quoting a buyer in Dublin. The lines are 300 queen bed linen sets at 14.50, which is 4,350.00, and 600 pairs of pillow cases at 3.20, which is 1,920.00. The tax rate is 0, so the total in the “Total (proforma)” line is 6,270.00. The order reference is Order 5521, the delivery terms are FOB Mumbai, and the validity is 14 days. The payment details ask for a bank transfer before dispatch and for the proforma number to be quoted. The number moves from PF-0001 to PF-0002 once the PDF is downloaded.
Delivery terms
The terms box takes any text. Export sales commonly state an Incoterm, such as FOB, CIF or EXW, which says who pays for transport and insurance and where the risk passes to the buyer. Write the term and the named place together, for example FOB Mumbai, because the place is part of the term. If you are unsure which term applies, ask your freight forwarder before you issue the document.
Proforma, quote or invoice
A quotation offers a price. A proforma invoice states what the invoice will be, and is used to trigger payment or paperwork. A tax invoice is issued at supply and is what the tax authority reads. If the buyer will only pay on an invoice, send the proforma first and the commercial invoice with the shipment. Keep the figures the same, and note the proforma number on the final invoice so they can be matched.
Edge cases
A line with no description and no rate is not printed. Quantities can be decimals, and rates can have up to two decimals on the PDF. A discount, a fixed amount or a percentage, and a shipping charge are available if you need them. The validity date is a plain date field. The seller’s details, tax setting and the next number are remembered in this browser, and the buyer’s details are not.
Limits
The page produces a document, not a legal or customs filing. Requirements for commercial and proforma invoices, such as country of origin, harmonised codes, weights and a signature or stamp, vary by country and by the authority involved, and are not checked here. Confirm the requirements with the buyer’s bank, forwarder or the customs authority before you rely on the document.
Related tools
- Invoice Generator issues the final tax invoice for the same order.
- Quote Generator is the better document when you are only offering a price.
- Multi-Currency Invoice Total Converter restates the total in the buyer’s currency.
- Credit Note Generator adjusts the invoice if part of the order is returned.
Checked against the current version of the Proforma Invoice PDF Generator on .