A pro forma invoice is a preliminary bill you send before the real invoice — a good-faith estimate of what a sale will cost, laid out like a normal invoice. It tells the buyer exactly what to expect, but it is not a demand for payment and does not go in your books as a sale.
When to use a pro forma invoice
Pro forma invoices are most useful in three situations:
- Deposits and prepayment — to request a deposit or full payment up front before you start work or ship goods.
- Confirming a sale — to give the buyer a document that looks like the final invoice so they can raise a purchase order or get internal approval.
- Customs and importing — shipping and customs agents often ask for a pro forma invoice to value goods before the commercial invoice exists.
What to put on it
Use the same fields as a normal invoice, with one difference: label it clearly. Include your business details, the buyer, a description of the goods or services, quantities and prices, any tax, the total, and the words “Pro forma invoice” plus a note that it is not a tax invoice and not a demand for payment.
Pro forma invoice vs quote vs tax invoice
A quote is an offer of a price; a pro forma invoice presents that agreed price in invoice form, usually once the buyer intends to proceed; the final (tax) invoice is the real accounting document that records the sale and the tax. Only the final invoice is used for VAT/sales-tax and your accounts.
Example
A designer agrees a $1,200 project and asks for a 50% deposit. They send a pro forma invoice for $1,200 showing the deposit due now, so the client can pay and the designer can start. When the work is done, they issue the real invoice for the balance.
You can create a pro forma invoice free — no sign-up, download the PDF in seconds.