What a proforma invoice is
A proforma invoice is a preliminary invoice sent before goods are shipped or work is done. It shows what the buyer will be charged, but it is not a demand for payment in the accounting sense and it is not entered in your sales ledger. Buyers use it to arrange payment or an import licence, and customs authorities sometimes accept it to clear goods before the final commercial invoice exists.
When to use one
- The buyer must pay in advance before you ship.
- The buyer needs approval or a purchase order internally.
- Customs or a bank (letter of credit) needs the details of an upcoming shipment.
What to include for international shipments
- Full seller and buyer details, and the ship-to address if different.
- A precise description of each item, quantity, unit price and currency.
- Country of origin and, if you know them, HS tariff codes (add them to the description).
- Delivery terms (Incoterms, such as FOB or DAP), weights and number of packages in the notes.
- Validity date and payment terms.
After payment
When the goods ship or payment arrives, issue the real invoice with a new invoice number: change the document type to Invoice and record any advance payment under “Amount paid / deposit”.
Proforma invoice vs quote vs commercial invoice
| Document | Purpose | Binding? |
|---|---|---|
| Quote | Offer a price before the order | Becomes binding when accepted |
| Proforma invoice | Confirm the order details so the buyer can pay or arrange import | A commitment to the terms shown, but not a request for payment in your books |
| Commercial invoice | The final invoice for goods shipped, used by customs | Yes; it is the sale |
Keep proforma invoices in their own number sequence (PF-001 …) so your invoice numbers stay continuous.
Related calculators
- Free Invoice Generator: Make a professional invoice and download the PDF.
- Quote Maker: Send a price quote clients can accept.
- Credit Note: Reduce or cancel an invoice you sent.
Questions people ask
Is a proforma invoice a real invoice?
No. It is an offer or preview. Don’t record it as a sale or charge VAT on it as if it were an invoice; issue the final invoice when the sale happens.
Can customs use a proforma invoice?
Many customs authorities accept a proforma invoice when a commercial invoice isn’t available yet, but rules differ by country. Ask your freight forwarder.
Formula checked October 2026 · How we calculate