Send a proforma invoice, a preliminary bill of sale, before you ship goods or start work, so your buyer can approve the price, raise a purchase order or arrange payment.
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A proforma invoice is a quote laid out like an invoice. It tells the buyer exactly what they will get and what it will cost before anything changes hands, which is useful whenever money or approvals have to move first.
Common situations: a customer who must pay a deposit before you order stock; a company whose procurement team needs a priced document to raise a purchase order; a buyer seeking budget sign-off or financing; and international trade, where an importer may need a proforma for their bank or freight forwarder. Requirements for customs and trade finance vary, so confirm what your buyer’s bank or agent needs.
Say you quote ten office chairs at 180 each plus 120 for delivery and assembly. The buyer sees 1,920 before any tax, the figure they need to approve or fund. BillFlow converts the sample into your own currency automatically, and you can switch to the buyer’s currency if you are exporting.
A proforma is sent before the sale. It isn’t entered in your sales records, doesn’t go into your tax returns and can’t be used by the buyer to reclaim VAT or GST. Buyers often pay against it, but it isn’t a demand for payment in the formal sense.
The final invoice is issued when the supply happens. Depending on your country it may need to be a VAT invoice or tax invoice, for example in the UK, the EU, Australia, the UAE or India, with your tax registration number. Give it a number from your regular series. Quantities and prices can differ from the proforma if the order changed. Rules for advance payments differ by country, so ask your accountant whether a deposit needs its own paperwork.
Be specific about brand, model, size or scope. Say who pays for freight and whether installation is included. State the validity period so a later price change doesn’t cause a dispute. If you need an advance, give the amount and add bank details with IBAN and SWIFT/BIC, a payment link with a scan-to-pay QR, or a UPI ID for buyers in India, so the buyer can pay as soon as they approve.
A proforma invoice is a preliminary bill sent before a sale is completed. It sets out the goods or services, quantities and expected price, but it is not a final invoice or a tax invoice and isn’t recorded as a sale.
Generally no. It is a formal quote that confirms the terms you are offering. Once the order is confirmed and delivered, you issue a regular invoice for the actual supply.
Showing the tax that will apply helps the buyer see the full cost. It doesn’t create a tax liability by itself, and the buyer can’t reclaim tax using it; that needs the final invoice.
A reference number is good practice, but use a separate series such as PI-001 so proforma documents never mix with your real invoice numbers.
There is no standard period. You set it, commonly 7 to 30 days, and state it in the notes so the buyer knows when prices may change.