A proforma invoice is a common form used in both domestic and even more commonly in international trade to provide buyers as well as in the event of international trade the appropriate import/export authorities, where additional details may be required for customs, with required information about shipment. The proforma invoice template is a document issued to customers requesting payment for a product or service before the product is delivered, or the service rendered. It is popular in the realm of shipping, as it gives customers a chance to inspect the purchased item before paying for it in full. Proforma Invoice Template – Proforma invoices help to decrease any confusion that may occur when a buyer makes a transaction with a seller. When a buyer purchases goods or services, the seller sends an abridged invoice called pro forma invoices. Apr 21, 2021 Pro Forma Invoice Example If the parties have already completed a sale, a commercial invoice records it. If the transaction has not yet occurred, the selling firm may use a pro forma invoice. A pro forma invoice works as an invoice draft; it lets customers know the final price and allows vendors to proceed with the work. Pro forma invoices are typically sent ahead of the completion of a service or delivery of goods. They give buyers a final sale price and sellers a better indication of future payment.
Small business owners and independent sellers often use a proforma invoice to declare the value and specifications of the deliverables. Automating your invoicing has profound advantages for a business as well as underlying benefits for the buyer and seller. Here are some of the benefits of using a digital proforma invoice:
✔ Ensures that the buyer and the seller are on the same page.
✔ Prevents any conflict and dispute between the buyer & the seller.
✔ Since it’s not the final invoice, a proforma invoice saves you from needless admin if any change occurs in the price and deliverables.
✔ Portrays you as a proactive, professional, and trusted seller.
✔ Helps in estimating the final cost and net profit on the promised goods and services to prevent you from audit problems.
✔ Provides the necessary details to the buyer about the products or services, time-line, & estimated cost to set clear expectations.
✔ Serves as a medium of clear communication b/w both parties.
✔ Helps in sustaining smooth workflow and managing the cash flow in a business by disregarding any money-losing mistakes.
✔ Use freeivoicebuilder.com to upgrade your invoicing process.
✔ Functions as the primary source for the seller to create an official invoice after the sale is confirmed.
Create a proforma invoice using our free template listed below. A pro forma invoice is very similar to a sales quote because it is used to formally define the value of a trade prior to shipping or the actual completion of the sale. In business, the term pro forma is often used to indicate a planned transaction or statement. It may be similar to a confirmed purchase order and may be legally binding, depending on the circumstances.
License: Private Use (not for distribution or resale)
'No installation, no macros - just a simple spreadsheet' - by Jon Wittwer and Brent Weight
Vertex42's Proforma Invoice Template will help your company generate professional looking invoices. The template is designed for both domestic and international trade, with the same look and feel as our quote template and sales invoice.
This is a common form used in both domestic and international trade, where additional shipping details and the currency need to be defined, as well as details required for customs. We've designed our Pro Forma Invoice Template with this in mind. If you are doing business domestically, you might want to try one of our other invoice templates. See below for more information.
The template follows a typical pro forma format. Simply download and fill out your business and customer information. Then begin filling out details of the proposed transactions including shipping details, payment terms, additional fees, costs and sales terms. Use the tips below and the info to the right of the form for help with specific sections.
Sometimes you'll need to include additional lines of details regarding a particular product. Probably the best approach is to just enter the details on separate rows. If your item description is longer than a single line, increase the height of the row. The text is designed to wrap, but because the cells are merged, the row height doesn't adjust automatically. If you want to include a Return inside the cell description, press Alt+Enter.
If the pro forma will be used for customs, fill out the Reason for Export and sign the document. Otherwise, you might simply delete those sections.
Proforma invoices are most useful when two companies are doing business together for the first time and for import/export transactions. Below are some of the advantages: