Free Proforma Invoice Template

Frequently Asked Questions

• What is the difference between an invoice and a proforma invoice?

  An invoice is a written request for payment that acts as a record of a financial transaction. It normally includes

  • Transaction date
  • Party’s names and addresses
  • A description of the products or services rendered
  • The total amount owed
  • Any applicable payment terms

  On the other hand, a proforma invoice is a document that is sent prior to a transaction and acts as an estimate of the overall cost. It is often used to get finance or a letter of credit and is not a legally binding document. The information on a proforma invoice is typically the same as that on an actual invoice, but it is not regarded as a final invoice and cannot be considered for the use of accounting.

• What is a proforma invoice template?

  A seller or business can use a proforma invoice template as a document or pre-designed format to make and distribute proforma invoices to their clients. It typically contains all the required sections and information, including the transaction date, the buyer and seller’s names and addresses, a description of the goods or services offered, the total price, and any payment terms.

  It is a template that makes it simple for business owners to rapidly and precisely construct a proforma invoice without having to start from zero each time.

• What is the purpose of the Proforma invoice?

  An invoice serves the objective of providing an early estimation of the entire cost of a sale or transaction before it is completed. It acts as a guide for both the buyer and the seller, assisting them in comprehending the specifics of the transaction and making sure they agree on the conditions of the sale. Pro forma invoices can also be used for a number of things, including

  • Securing funding: Because a pro forma invoice offers a thorough estimate of the complete cost of the transaction, it can be used to obtain financing from banks or other financial organizations.
  • Obtaining a letter of credit: A pro forma invoice can also be used to get a letter of credit, which is a bank’s assurance that the buyer will pay the seller for the products or services rendered.
  • Obtaining an upfront payment: A pro forma invoice will serve as a document that certifies the purchase and the specifics of the transaction if a seller requests payment in advance before shipping the items.
  • Planning & Forecasting: Pro forma invoices can also be utilized by companies for planning and forecasting their financial status and for making important business choices.
  • Clearance: Pro forma invoices, which serve as estimates of the value and kind of the imported items, may be required by some nations as supporting documentation for customs clearance.

• What should you include in the Proforma invoice template?

  The following details must include on a proforma invoice template:

  • Billing clients: Using invoices to charge clients for services done, such as site visits, design work, and consultations, interior designers can charge clients for the time and resources invested in a project.
  • Date: The invoice date.
  • Seller & Customer Information: It includes names, addresses, and phone numbers.
  • Line item description: A thorough explanation of the items or services offered, together with any pertinent details like size, number, or product codes.
  • Total cost: The sum of all transaction costs, including any applicable taxes, shipping and handling fees, and other fees.
  • Payment conditions: The payment terms, which include the payment deadline, any rewards or discounts, and other necessary details about the payment procedure.
  • Shipping Information: The mode of delivery, estimated time of arrival, and any tracking data.
  • Invoice number: A special invoice number that can be used to track the transaction is provided for the pro forma invoice.
  • Signature: The authorized representative of the seller’s signature.

  It is crucial to keep in mind that a proforma invoice template could also include extra details like discounts, specific instructions, or unique taxes based on the demands of the company and the client.

• How to create a proforma invoice?

  Here is how you can create a proforma invoice

  • Select a template: Use a spreadsheet program to create a proforma invoice template that best suits your needs. You may also download one from the internet.
  • Describe your business here: Enter the client’s details along with your company name, address, and phone number.
  • List the goods or services offered: Include information on the amount, cost per unit, and price of the goods or services you are offering in your list.
  • Include any additional fees, such as taxes, shipping, and handling costs, or discounts, if any.
  • Include payment terms: Add deadline, any rewards or discounts, and any crucial details regarding the payment procedure.
  • Include any pertinent shipment details such as the shipping method, the estimated arrival date, and any tracking information, if available.
  • Unique number: For the proforma invoice, add a special reference number that can be used to follow the transaction.
  • You should sign off: With the signature of a representative from your business, sign the invoice.
  • Send the invoice: The proforma invoice can be sent to the client through email or postal mail for evaluation and approval.