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Proforma invoice is used for the creation of sales, whereas invoice is used for confirmation of sale. Proforma invoice is provided by the seller, on the request of the buyer before the placement of the order. As opposed to invoice, which is issued by the seller to the buyer to request payment of goods delivered.

A proforma invoice is a preliminary bill of sale that is sent to the client before the work is completed. It's a commitment to goods or services that have yet to be delivered. It lists the work to be completed, the quantity and the price you're charging for the products or services.

Proforma applies to invoices that are not yet completed which means that the invoices do not have an invoice number that is needed for every legal invoice. Unlike an invoice, a proforma invoice is an estimate or a quote that outlines the goods and services that a seller commits to selling.

A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction. It is essentially a "good faith" agreement between you (the seller) and a customer so the buyer knows what to expect ahead of time.

How to Use a ProForma InvoiceCalculate Goods to be Sent. Review the order in detail and calculate the total preliminary costs.Describe Each Preliminary Charge. Complete the invoice by filling out these preliminary quantities and costs.Submit Invoice.Ship the Goods.

A proForma invoice is a preliminary record of sale that serves as a stand-in until transaction details are finalized. Like any other invoice, this one should contain an itemized list of items and costs.

For starters, a proforma invoice is not a legal document. This means that the customer has no legal obligation to pay the amount on the proforma invoice.