Proforma Invoice

A proforma invoice is a preliminary bill of sale sent to buyers before the actual delivery of goods or services. It serves as a pre-invoice document that outlines the details of a potential transaction. Here are its key aspects:

• A proforma invoice typically includes details such as a description of the goods or services, their quantity, prices, any applicable taxes or fees, payment terms, shipping details, and other relevant terms and conditions.

• It functions as a quotation or estimate, providing the buyer with an approximate cost of the goods or services they intend to purchase.

• Unlike a commercial invoice, a proforma invoice is not a demand for payment or a legally binding document. It serves as a precursor to the actual invoice and sets the groundwork for the transaction.

• It can act as a confirmation of an order placed by the buyer, ensuring that both parties agree on the terms of the transaction before the goods are shipped or services are rendered.

• Proforma invoices assist in planning for both the buyer and seller, allowing them to prepare for the upcoming transaction. They also serve as a record of the transaction details for future reference.

Businesses commonly use proforma invoices in various industries, especially in international trade, where they help facilitate smooth transactions by providing a detailed overview of the expected transaction. They're a helpful tool for both buyers and sellers to establish clarity and understanding before finalizing a deal.

How to generate Proforma Invoice?

Generating Proforma Invoice

• Click New Estimate

• Select the Customer, Location, Estimate Date and enter the Reference Number.
• Enter the Billing and Shipping address of sender and receiver.
• Add items for which estimate is required and their respective quantity
• Click Save.

• Estimate/Proforma invoice has been generated you can download it as pdf.
• We have option to edit if any changes needed in the estimate and also an provision to convert it as invoice (sale).

Payment and Invoice Generation

• Once the customer has finalized and pays the value of the estimate, click Convert to Invoice
• Select the Payment Method and Order Date.
• Click Create Invoice

• We have generated the final invoice for the estimate.

Updated on: 11/12/2023