InvoiceGenerator

What Is a Proforma Invoice? (And When to Send One)

A proforma invoice is a preliminary bill: it shows the buyer exactly what a future invoice will look like — prices, quantities, terms — before the sale is final.

Quick answer: A proforma invoice is a pre-sale document that mirrors a final invoice but is not an accounting record. It is used for quotes, advance payments, import paperwork and internal approvals — and is usually marked PROFORMA with a validity date.

Proforma vs quote vs final invoice

  • Quote: informal price offer, may lack line detail
  • Proforma: invoice-shaped quote, used for payments and paperwork
  • Final invoice: the accounting document that creates tax liability

The four classic uses

  • Advance/deposit requests — buyer's finance can pay against it
  • Import paperwork — buyers need it to arrange foreign exchange or LCs
  • Internal approvals — large buyers route proformas through procurement
  • Tender responses — showing full pricing structure

Converting proforma → final

After delivery, issue the final invoice with a real sequence number for the same amounts. The proforma gets filed; it never enters the books as revenue.

Frequently Asked Questions

Does a proforma invoice include tax?
It can show indicative tax, but no tax is charged until the final invoice — tax authorities assess VAT/sales tax on the final document.
How long is a proforma valid?
Whatever you state — 30 days is typical. The generator has a dedicated 'valid until' field.
Can I number proformas sequentially?
Yes, in their own PI- sequence — never in the final invoice sequence.

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