Proforma Invoice Insert Formulas For Free

Providing as precise an estimate as possible, the goal of a proforma invoice is to avoid exposing your customer to any unanticipated charges or duties. Much like an invoice, a proforma invoice is a binding commercial agreement.

Note: only after a pro forma invoice is converted into a true invoice will its value be registered in your account. This is because, until that point, there is no guarantee the customer will agree to your terms.

A supplier will issue a Pro forma invoice if a customer requests him to produce a document for goods and/or services yet to be delivered. For example: A two wheeler customer might agree to the price of a bike on the pro forma invoice.

Download your free proforma invoice template. Add your name, your business name and your contact information. Customize with your business branding and logo. Fill out the customer's name, business and contact details. Include a unique invoice number, invoice date and payment due date.

Like a regular invoice, proforma invoices should include contact details, a date of issue, a description of the goods or services provided, the total amount due, and any VAT. They might also include payment details or terms and conditions such as which methods of payment you accept and when payment is expected.

The commercial invoice is more like the legal document of the actual sale. This document is used to record the AR for the seller and AP for the buyer. In some countries, a proforma invoice is accepted in lieu of commercial invoice to process import customs procedures to release cargo out of the country.

The pro-forma invoice is issued before sales takes place. Once after receiving pro-forma invoice from the supplier, the buyer sends a purchase order or opens a letter of credit to the supplier.Normally purchase order is prepared by buyer on the basis of pro forma invoice sent by seller to buyer.