Proforma Invoice Format Templates

Proforma invoice - What is a proforma invoice?

A proforma invoice is a document sent by the seller outlining the intention to deliver the goods or services to the customer at an estimated price. It holds all the information related to the goods or services including tax, commission, discounts, shipping details, and shipping cost.

As a proforma invoice is just an estimated document, it is not a true invoice and is also generally issued before the GST bill.

What is the difference between a proforma invoice and an invoice?

A proforma invoice is a non-legal document issued by the seller committing to delivering the product at a specified date and time. At the same time, an invoice is sent by the buyer to the client after the product is delivered. Both documents have similar information, but still, there are some significant differences.

A proforma invoice is not a legal document. In contrast, an invoice is a legal document.

• When a proforma invoice is issued, the client doesn't need to make the payment. However, the buyer can ask for the advance payment. Whereas when the seller issues an invoice, it is essential to make the payment for the product delivered to the buyer.

A proforma invoice is not a legal invoice, so the seller can not consider the proforma invoice as account receivable.

• The buyer can not consider the proforma invoice as account payable.

• Proforma invoice is issued before the product is delivered or asking for the advance payment or half payment. An invoice is issued before the payment is made, asking for the payment.

When should a proforma invoice be issued?

Proforma invoice helps both the buyer and seller to streamline the sales and purchase process. The buyer can quickly know when the product will get delivered, shipping details, price of the product, payment mode, etc. by looking at the proforma invoice.

• Primarily it is used when the product is to be delivered so that the delivery process can be more straightforward for both parties.

• A proforma invoice is used by the seller asking for the advance payment.

Why use a proforma invoice for your business?

Creating a proforma invoice helps both parties to get the information about the transaction that takes place in the future. Here are some of the reasons to use a proforma invoice in the business.

Detailed Information - A proforma invoice provides detailed information about the transaction. It outlines the products or services, their quantities, prices, and other essential details. This clarity ensures that both the buyer and the seller have a comprehensive understanding of the upcoming transaction.

Advance Payment - Proforma invoices are often used to request advance payments from buyers. Once the buyer approves the proforma invoice, the seller can request payment before delivering the goods or services. This advance payment ensures a secure transaction for the seller.

Exporting- In international trade, proforma invoices play a vital role. They provide essential information for customs paperwork, helping calculate customs duties accurately. By detailing shipping information and amounts, proforma invoices facilitate smooth cross-border transactions, ensuring compliance with international trade regulations.

Invoice Creation - Once a proforma invoice is accepted and finalized, it can be easily converted into a formal invoice. Utilizing a proforma invoice generator, businesses can seamlessly convert proforma invoices into invoices with just one click. This streamlined process saves time and ensures accurate documentation.

Building Trust - Providing a proforma invoice demonstrates professionalism and transparency in business dealings. It instils confidence in buyers as they have a clear understanding of the transaction terms and costs upfront. This transparency helps build trust between the parties involved in the transaction.

Negotiation Tool - Proforma invoices can serve as a negotiation tool between the buyer and seller. If there are any discrepancies or changes required, they can be addressed and resolved before the actual transaction takes place. This preemptive negotiation can prevent misunderstandings and disputes later on.

Legal Protection - Proforma invoices provide legal protection to both parties by outlining the terms and conditions of the transaction. In case of disputes or disagreements, the proforma invoice serves as a reference point, helping resolve conflicts and ensuring fair business practices.

There are two ways to create a proforma invoice online.

1. Creating proforma invoices using Word or Excel
2. Creating proforma invoices using Proforma Invoice Generator

Issuing a Proforma Invoice Format Using Word or Excel

You can create a proforma invoice online by using the invoice templates in Word or Excel. But by doing this, you have to manually change the invoice number and then have to save the proforma invoice every time. You then have to manually convert it into an invoice which will be a time-consuming process.

After creating through Excel or Word, then you have to download the proforma invoice and send it to the client which takes time or you can directly visit Word invoice templates or Excel invoice templates page to create one.

Issuing a Proforma Invoice Using Proforma Invoice Format

The other method is to create a proforma invoice using a free proforma invoice generator. Online proforma invoice maker helps you to create a proforma invoice easily with pre-built features. No need for retyping the client details every now and then which eventually saves your time.

Free invoicing software helps you create, manage, and send proforma invoices online and track all your invoices. It becomes easy and simple to finalize the invoice by merely converting the proforma invoice within a second.

• Title

  It should mention the word “PROFORMA INVOICE” at the top so that the user won’t get confused by seeing the document.

• Proforma invoice number

  Add the proforma number. The number must be unique with the combination of alphanumeric. The invoice number should not be repetitive.

• Issue date

  Add the issue date of the proforma invoice.

• Add your details

  Include business name, address, email, GSTIN and other details.

• Add client details

  Include business name, address, GSTIN.

• Shipping Details

  It includes the details of the product to be shipped. Like address, challan number, state, country, delivery date, transport.

• Product/service details

  Include the name and description of the product, quantity, rate, discounts etc.

PDF Proforma Invoice Template for Free

Create your proforma invoice within seconds by adding all the necessary details and customizing it as per your needs. You can add custom fields and columns with a single click. Fully customizable template for small businesses, freelancers, and agencies.

Print, email, share via WhatsApp or Download PDF proforma invoice and get paid faster. Once the proforma invoice is sent via email, you can easily track the invoice and can check if the mail was opened by the client or not. Refrens also provides the feature to download the duplicate copy and triplicate copy of the proforma invoice.

Should I make payment on a proforma invoice?

The buyer can make the client's advance payment based on the proforma invoice issued by the seller. There is no such compulsion to make complete payment or compulsory payment for the proforma invoice raised.

If the seller asks for payment, then you can pay the proforma invoice. Once the payment is made, a proforma invoice can be used as a reference document for the invoice to be created in the future. It helps to avoid misunderstanding about the payment and how much amount is due.

When creating the invoice, a reference number is added to the invoice, which is eventually the proforma invoice number. It helps both the buyer and the seller to record the transaction in their accounting.

How to Convert Proforma Invoice to Invoice?

As you know, a proforma invoice is not a legal document and can not be used to record as account receivables. So the seller has to send the actual invoice if the buyer accepts the proforma invoice. Here, the seller sends the invoice asking for the payment, once the product is delivered to the customer.

So when selecting any software, you must look for the feature which says “Convert to Invoice”. It helps convert the proforma invoice to invoice without creating the invoice from the scratch, which saves your time and effort. Using a proforma invoice generator, you can easily convert the approved proforma invoice to an invoice easily with just one click. The best part is all these documents get interlinked with each other so that you can use the documents for further understanding or reference.

Create full-featured and attractive online proforma invoices for your clients with Refrens Proforma Invoice Format. Beautifully designed proforma invoices especially for freelancers, agencies, and small businesses. With our user-friendly Proforma Invoice Format, create your proforma for the products or services you provide. No re-entering of data is required for converting approved proforma to invoices using invoice generator software.

Using Refrens Proforma Invoice Format, you can create and manage proforma invoices for free without any hassle. Our Proforma Invoice Maker also supports multiple currencies and more than 200+ countries. If you have a business with global clients, you can change the currency on your invoice with just one click. You can also add your bank details or payment links to get paid on time with Free Proforma Invoice Generator.

Online proforma invoice template provides you different proforma invoice templates to create proforma invoice online and also options to send invoices to the clients without any defer. Send invoices through Email or by sharing through WhatsApp. You can also print the invoice and download it as a PDF.

What is the Cost of Proforma Invoice Format?

When searching for the perfect proforma invoice format, you come across different pricing models that can indirectly increase the cost of your business. So finding budget-friendly software is necessary especially for freelancers and small businesses.

Some software charges for each invoice you create Whereas some software charges a monthly or yearly fee. Refrens allows you to create 100 documents. There are no hidden charges. No signup or setup fee. You can create proforma invoices without paying a single penny. You will get the same feature as you get in paid software.

Access all the essential features like recurring invoices, proforma invoice templates, reports, accept payments online, client management and many more. Refrens works on the revenue model of charging a small fee when you wish to receive payments online through a payment gateway.

Tools & Services provided other than Proforma Invoice Template

All the essential tools required for small businesses to run the business seamlessly are provided by Refrens. It includes tools like invoice maker, GST bill generator, quotation software, purchase order generator. Other than these tools Refrens is also a marketplace that helps businesses to complete the work or project by connecting them with the best freelancers or agencies.

Countries Supported

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1. International Trade Transactions In international trade, a proforma invoice is often required to facilitate customs clearance and to comply with regulatory requirements. It acts as a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. Using a proforma invoice generator can simplify this process by creating accurate and professional documents quickly.

2. Formalizing Agreements A proforma invoice can be used to formalize an agreement between the buyer and the seller. It ensures that both parties are clear about the terms, including the price, quantity, and delivery details, before the actual invoice is issued. Creating a proforma invoice online can make this process even more efficient, allowing for instant updates and easy sharing.

3. Budget Approval Processes For businesses that need internal budget approvals before purchasing, a proforma invoice template is useful. It allows department heads to get a clear picture of the expenses involved and helps in securing the necessary approvals. Using a standard proforma invoice format ensures consistency and clarity in these internal communications.

4. Initiating Production or Services When a client approves a proforma invoice, it often signals the green light to start production or deliver services. It ensures that the seller can proceed with confidence, knowing that the client has agreed to the terms and prices. A proforma invoice maker can help streamline the creation and approval process, reducing delays and miscommunications.

5. Documenting Prepayments If a client needs to make a prepayment, a proforma invoice helps document the transaction. It provides the client with a detailed breakdown of what they are paying for, which can be essential for financial records and future references. Creating a proforma invoice online can facilitate quick and accurate documentation.

6. Loan or Financing Applications Sometimes, businesses need to apply for loans or financing to cover the costs of goods or services. A proforma invoice template can be used to present a clear and detailed estimate of the required funds to the financial institutions. Utilizing a proforma invoice generator can ensure that the document meets all necessary requirements and is professionally formatted.