Proforma Invoice Template: When and How to Use It

TL;DR: A proforma invoice is a preliminary bill or estimate sent before goods are delivered or services are performed. It is not a demand for payment — it is a declaration of intent, showing the buyer what they will owe if they proceed. Proforma invoices are common in international trade, large projects, and any situation where the client needs to approve costs before committing.

Think of a proforma invoice as a detailed quote formatted like an invoice. It looks like a real invoice, includes the same fields, but it is explicitly labeled "Proforma Invoice" and does not create a payment obligation.

When to Use a Proforma Invoice

• International trade — Buyers need a proforma invoice to arrange payment, apply for import licenses, or clear customs.
• Large projects — When the client needs internal approval before committing to the expense.
• New clients — To establish the scope and cost before starting work.
• Custom orders — When the final price depends on specifications the client has not finalized yet.
• Grant or budget approval — The client needs a document to submit with funding applications.

Proforma Invoice vs Commercial Invoice

• Legal status — A proforma invoice is an estimate, not a binding document. A commercial invoice is a legally binding request for payment.
• Timing — Proforma comes before the sale. Commercial comes after delivery.
• Purpose — Proforma is for planning, approval, and customs. Commercial is for actual payment and accounting.
• Accounting — Proforma invoices are not recorded as income. Commercial invoices are.

What to Include on a Proforma Invoice

A proforma invoice includes the same fields as a regular invoice, plus:

• "Proforma Invoice" label — Clearly marked so it is not confused with a final invoice
• Validity period — How long the quoted prices are valid (e.g., "Valid for 30 days")
• Estimated delivery date — When the goods or services will be delivered
• Terms and conditions — Payment terms, shipping method, warranty, etc.
• Incoterms (for international trade) — FOB, CIF, EXW, etc.

Converting a Proforma to a Final Invoice

Once the client accepts the proforma and the work or delivery is complete:

1. Create a new invoice with a proper invoice number (the proforma number is separate)
2. Reference the proforma number on the final invoice for traceability
3. Update any amounts if the final costs differ from the estimate
4. Change the label from "Proforma Invoice" to "Invoice" or "Tax Invoice"
5. Send the final invoice as the actual payment request

Proforma Invoice Mistakes to Avoid

• Not labeling it clearly — If it is not clearly marked "Proforma Invoice," the client (or tax authorities) may treat it as a real invoice.
• Using the same numbering sequence — Keep proforma numbers separate from your actual invoice numbers to avoid confusion.
• Forgetting the validity period — Prices change. State how long the quote is valid.
• Leaving out Incoterms — For international shipments, the buyer needs to know who pays for shipping, insurance, and duties.

Create Your Proforma Invoice

Use our free invoice generator to create a proforma invoice — just add "Proforma Invoice" as the document title and include a validity period. For businesses that regularly send proforma invoices before converting them to final bills, InvoiceBlitz lets you manage the full workflow from quote to invoice in one place.