Articles on: Sales

Proforma Invoice

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


Navigation: POS Admin → Sales → Estimate


  • 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

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