Proforma Invoice: Meaning, Format and Free Template

Proforma invoice meaning

A proforma invoice is a preliminary invoice sent to a buyer before goods are shipped or services delivered. "Pro forma" is Latin for "as a matter of form": the document looks like an invoice and carries the same information, but it is issued in advance, as a commitment of what the final bill will contain. It is not a demand for payment and it is not recorded as a sale in the accounts.

Buyers use it to approve an order, obtain internal sign-off, arrange financing or open a letter of credit. Importers use it to apply for import licences and to estimate customs duties before the shipment leaves.

Proforma invoice vs invoice vs quote

A quote can be rough. A proforma is precise: exact items, quantities, prices, taxes, delivery terms and validity. The final invoice should match the proforma unless something changed and both sides agreed.

Proforma invoice format: what it must include

1. The title "Proforma invoice", so nobody books it as a sale.
2. A reference number (PRO-0001, for example) and the issue date.
3. A validity date: how long the prices hold. Thirty days is common.
4. Seller and buyer names, addresses and, for cross-border sales, tax or registration numbers.
5. A description of each item with quantity, unit price and line total. For goods crossing a border, add the HS code and country of origin.
6. Currency, subtotal, taxes and total.
7. Delivery terms (Incoterms such as FOB or DAP) and the estimated shipping date.
8. Payment terms: deposit required, payment in advance, or the terms that will apply to the final invoice.
9. A line stating that this is not a request for payment and that a final invoice will follow.

The free proforma invoice generator has a field for each of these, produces a PDF with the correct title and wording, and lets you convert the same details into the final invoice later. If you prefer to edit a file, the invoice templates page has proforma versions in Word and Excel.

When should you use a proforma invoice?

• Export sales. The buyer needs a proforma to arrange an import licence, foreign-exchange approval or a letter of credit with their bank.
• Advance payment. You want the buyer to pay before you ship, but you cannot issue a final invoice for goods that have not left.
• Custom or large orders. A proforma confirms the exact scope and price before production starts.
• Purchase-order workflows. Corporate buyers often need a proforma to raise a purchase order in their system.

Mistakes to avoid

• Calling it an invoice. If the title says "Invoice", the buyer's accounts team may book it and pay it, or reject it as premature. Use the full title.
• Leaving out the validity date. Without it, a buyer can accept old prices months later.
• Different totals on the final invoice. If costs changed, issue a revised proforma first.
• Using the proforma as the customs document. Customs can accept a proforma for an estimate, but the shipment itself needs a commercial invoice.

Proforma invoice example

PROFORMA INVOICE #PRO-0007, issued 10 September 2026, valid until 10 October 2026.

Seller: Lakeside Textiles Ltd, Mombasa, Kenya, VAT KE0123456789. Buyer: Nordic Home AB, Gothenburg, Sweden.

Items: Organic cotton throw, 120 × $18.50 = $2,220.00, HS 6301.30, origin Kenya. Cushion cover 45 cm, 200 × $6.20 = $1,240.00, HS 6304.92, origin Kenya.

Subtotal $3,460.00. Tax 0% (export). Total $3,460.00. Terms: FOB Mombasa. 30% deposit on acceptance, balance before shipment. Estimated shipping 15 working days after deposit.

Note: This proforma invoice is a quotation for the goods listed. It is not a demand for payment; a commercial invoice will be issued at shipment.

That is the complete format. Produce your own in a minute with the proforma invoice generator.