What is a proforma invoice?
A proforma invoice is a preliminary, quote-style document sent to a buyer before a sale is finalised. It sets out the goods or services, quantities, prices and terms so the buyer can approve the cost and arrange payment — but it is not a demand for payment and is not used for tax. Here is when and how to use one.
Key things to know
It comes before the sale
You send it to confirm price and terms before goods or payment move.
Not a tax document
Your accounts use the final invoice, not the proforma.
Common for imports
Customs often need a proforma to declare value up front.
Easy to convert
Reissue the same lines as a final invoice once confirmed.
How to create a proforma invoice
Label it clearly
Title the document "Proforma invoice".
List items and prices
Quantities, unit prices and the expected total.
Add terms
Validity, payment method and delivery terms.
Send for approval
Email the buyer a branded PDF.
Convert when confirmed
Issue the final, numbered tax invoice.
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Frequently asked questions
What is a proforma invoice in simple terms?
It is a "here is what it will cost" document sent before a sale, showing items, quantities, prices and terms so the buyer can approve and pay. It is more formal than a quote but is not the final tax invoice.
Is a proforma invoice a real invoice?
No. It is a preliminary document. The real, accountable invoice is issued once the sale is agreed. You should not record a proforma in your sales or tax accounts.
When should I use a proforma invoice?
Use one to confirm price before payment, to support customs declarations on imports, to request a deposit, or whenever a buyer needs a formal figure before committing.
How do I turn a proforma into a final invoice?
Keep the same line items, change the label to "Invoice", add an invoice number and date, and show any deposit already paid.
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