It could also be considered as a “confirmed purchase order” rather than the final bill. The Pro Forma Invoice is a document of commitment – a quote, if you will – to give the buyer the option to buy exactly what is within the invoice. What’s the difference between an Invoice and a Pro Forma Invoice? Include your signature and the date it was signed.For example, you don’t want to accidentally state a figure in Euros and find out later that it will cost the client more in Pounds. State the currency and shipping method (if needed).Be transparent with the customer, don’t hide extra costs just because you think it will win you the sale. List items separately and breakdown what each costs.

Clearly state at the stop “Pro Forma Invoice” and also include the name and address of the seller, and buyer. This should reflect what you have arranged for the prospective deal, and identify any additional costs.

Here’s what you should be displaying in your invoice There’s no need to include an invoice number, date of delivery, or any payment terms. The purpose of a Pro Forma Invoice is not to be legally binding. You should include most of the elements of a true invoice, including the date, the contact details of both the buyer and the seller, product or service details, the agreed upon price, taxes, shipping costs, the total, and any terms of credit you may have agreed too. It provides a company the chance to outline its commitment to sell a certain quantity of products or services, accompanied with a clearly indicated price.Īs and when the customer confirms that they’re ready to purchase, you can transform your Pro Forma into a full invoice and send it to them. You can view this type of invoice as a “pre-advice document”, a business provides this before the buyer confirms, finalises, or settles a deal. Use a Pro Forma Invoice template to get started What is a Pro Forma Invoice?Ī Pro Forma Invoice gives your customer an idea of how much your products/services will cost them before they buy from you, it can be used to send quotes or estimates.Īn invoice that is pro forma, is purely informational and should be clearly marked as such when sending it to a client.

How to make proforma invoice in word