20+ Printable Proforma Invoice Templates (Excel / Word)

A proforma invoice template is a document that ensures both parties are on the same page about an agreement that is made for business purpose. This is an official document and not used by the Accounts Payable or Accounts Receivable departments. You can use it as a seller.

What is a proforma invoice?

Proforma refers to incomplete invoices. A proforma invoice doesn’t contain an invoice number. For all legal invoices, this is a requirement. This invoice is only considered a quote or estimate. Moreover, it allows you to outline the goods or services that you commit to selling. It includes the prices of the services or goods. Prospective clients get an overview of the costs of the products or services with the help of this invoice. In this way, they can make a decision easily.

Difference between an invoice and a proforma invoice:

An invoice is a commercial tool. Typically, it contains the total amount for services or products due to the customer. On the other hand, a proforma invoice is a seller declaration. It declares the services or products provided to the customer on a set date and time.

Why do you require a proforma invoice?

For the first time, when two businesses plan to do business together then the significance of a proforma invoice becomes evident. Below are some reasons that why you need a proforma invoice;

To provide details:

It contains all of the details of your transaction. This way, the customers has the exact knowledge about the amount they will pay. This also leaves no risk of confusion or misunderstanding. Furthermore, the invoice assists you in close dealings. It makes clients feel at ease regarding the terms of your transaction.

It assists in enabling payment:

Most importantly, this invoice secures credit for the client for buying the goods or services that you provide. The international buyers can use this credit before you ship out the goods. International transactions can’t take place without the invoice.

For crossing borders:

The proforma invoice can use to secure consular invoices and customs paperwork. You can also use it to identify shipment values required to calculate import taxes and customs duties.

It expedites invoicing:

As soon as you have finalized the proforma invoice, a commercial invoice can be quickly finalized and then dispatched to a customer for payments.

The important components of a Proforma invoice:

The Proforma invoice consists of the following important elements;

Title and date

Your invoice must contain a title ‘Proforma invoice’. Provide the required information such as Proforma invoice number, issue date, due date, quotation number, and purchase order number.

Provide your information

Here, you have to give your company information such as your company name, address, country, state, and contact details.

Client details

Give your client details like their name, address, contact details, and state of supply.

Description of product/service

Along with a description, enter the name of the product and service. Also, include tax value, quantity, amount, discounts, and commissions.

Shipping details

You can easily include the shipping details if you are selling physical products such as challan number, date, transport number, and shipping notes.

Terms and conditions

Specify the terms and conditions of the product or service and your company.

How do you create a proforma invoice?

The proforma invoice is an offer to sell. You shouldn’t undervalue it. Follow the below steps for creating this invoice;

Start with the header:

At first, there comes a header in your proforma. In the header, you must use the words “ProForma Invoice.” Also, include the name and logo of your business. All these things make your business stand out. It is recommended that you should print the invoice form on the official company letterhead. A company’s letterhead should already include the aforementioned information. Next, specify your contact details and the date when you created the invoice and the expiry date.

The contact details of the buyer:

Here, you have to provide the information all about your buyer and this includes the buyer’s;

• Name, phone number
• Mailing address
• The name of their company
• Their company’s email address

Add the invoice number:

Every invoice needs a number. This number is used to reference your business’ accounting information and that of your buyer. The numbering system you select is your choice. You can begin from anywhere you want. Then, you have sequential numbers.

Specify your reason for exporting the goods:

In voice, you have to specify your reason for exporting the goods if you are planning to use the invoice to export them.

Add the shipping information:

In this section, include the following information;

• The mode of transport
• How many packages you want to send
• The shipment’s total gross weight

Make an itemized breakdown of the charges:

It is important to break the shipment down and get into the certain details. You have to be as detailed as possible. Most proforma invoices aren’t accepted due to the information given to the buyers or sellers are unimportant. It didn’t inform the buyers on everything they should know. By remaining specific with the details then there is less chance that the buyer will opt for another supplier.

Mention details such as shipping, tax, and total amount due:

You should check the tax laws first before making any calculations on proper sales taxes. Never forget to add the necessary handling and shipping charges. This commonly specifies duties levied at customs by either of the countries for exports. Then, write down the total amount. You should clearly state this in your invoice.

Add the footer:

Add the footer to specify additional information such as your return policy or guarantee on the goods that you sell. Finally, keep in mind that it is important to thank the customer for their business.

Mention additional items if you see that there is a need for these:

Invoices created for international trade use should include the following information;

• The reference number of the buyer
• The date of inquiry
• The price of each of the items
• The delivery point
• Any insurance details
• Costs of customs and shipping
• From the airport or port, the estimated shipping date

Additionally, you can also download the invoice template online. You can also customize it if your business requires additional information fields.

When to issue a Proforma invoice?

With the help of Proforma invoice, the buyer and the seller can streamline the selling and purchasing process. The buyer can determine the delivering date of the product, shipping details, price of the product, payment mode, and more by using this invoice. Generally, it is issued in the following situations;

• A Proforma invoice is issued when the product is to be delivered. The delivery process with this invoice becomes more straightforward for both parties.
• The seller issues the Proforma invoice when they have to ask for the advance payment.

The benefits of using a proforma invoice template:

Here are the benefits of using this template;

• By having a proforma invoice template, you don’t have to reenter information manually, you just have to save your template and replace unique information. Thus, it saves you time.
• You get frustrated when you make invoice documents from scratch. Instead, invoice templates are easier.
• It looks professional to use a proforma invoice template. If you make your invoice from scratch it doesn’t look professional. By using the template, you can give a professional touch to your invoice.
• You can easily convert your invoice to a new document just by removing the proforma header and inserting payment instructions.

Conclusion:

In conclusion, a proforma invoice template is a seller’s declaration tool that gives services or products to the customer on a set date and time. It is an official document that legally bound seller to its terms and conditions.

Faqs (Frequently Asked Questions)