Goods lines take a SKU or model and a lead time. Freight, insurance and duties sit are listed separately, giving the buyer the full landed cost.
Ridgeline, Harbor Point and the prices shown are a made up order to type over with your own. Drafts are kept in this browser and nowhere else.
A proforma invoice is a priced offer sent before goods ship or work starts. It looks like an invoice (seller and buyer details, a proforma number, issue date, itemised goods, freight, tax and a total) but it is not a demand for payment and not a tax invoice. Add a valid until date, the estimated delivery, delivery terms such as Incoterms and any deposit or prepayment you need. Once the buyer confirms and pays, issue a final invoice with its own number.
How the proforma invoice total is calculated
Every quoted line is multiplied out, freight and other charges are kept apart from the goods, the discount is taken off, any tax you switch on is added, and the deposit is worked out as a share of the total.
| What it covers | The math | |
|---|---|---|
| Goods line | A product, part or made to order item, with its SKU and lead time | Units × unit price |
| Service line | Measuring, installation, setup or training sold with the goods | Days, hours or visits × rate |
| Freight and insurance | Getting the order to the destination and covering it in transit | 1 × the carrier or insurer price you expect to pay |
| Duties and fees | Import duty, brokerage, crating or handling, if the terms put them on you | 1 × the expected charge |
| Discount and tax | A flat reduction, then tax only if you decide to show it | Discount shared across lines in proportion to their amount; rate × taxable lines after that share |
| Deposit | The advance you ask for before production or dispatch | Total × deposit % |
| Balance on final invoice | What the final invoice will still bill once the deposit is in | Total minus the deposit |
Worked example: a cabinet order for a new build, three goods lines, a three day install, freight and transit cover, no tax shown, 50% deposit
How to use this proforma invoice template
Fill the four tabs left to right. The sheet on the right redraws as you type, so you can read it the way your buyer will.
- Your business: seller name, address, contact and tax ID, plus who prepared the offer.
- Buyer and delivery: the buyer's name and company, their PO or RFQ reference, the ship to destination, country of origin, the Incoterms or delivery terms you are quoting on, shipping method and the estimated delivery date. Buyers planning a site schedule read that date first, so give the realistic one rather than the hopeful one.
- Logo, if you want one. It never leaves your computer.
- Quoted goods: one line per product with SKU and lead time, then Service, Freight, Insurance, Duties or Fee lines for everything else the buyer will pay.
- Validity and deposit: set how long the prices hold, the share you want up front and the date that deposit is due. The statement that the document is not a demand for payment prints under the title.
- Download PDF saves a one page proforma. When the order is confirmed, switch Document to Final invoice, enter the final invoice number, and the same lines print as the real bill with the deposit credited.
What a proforma invoice should include
A buyer may forward your proforma to a finance team, a lender or a broker. Each block below answers a question one of them will ask.
| Block | What it holds |
|---|---|
| Title | The words Proforma Invoice at the top, so nobody files it as a bill. |
| Seller details | Business name, address, contact, tax ID or registration number and logo. |
| Buyer details | Buyer name and company, address, contact and their PO or RFQ reference. |
| Invoice information | A proforma number, issue date, currency and the date the quote stays valid until. |
| Offer and shipping details | Destination, country of origin, Incoterms or delivery terms, shipping method and estimated delivery. |
| Quoted goods and services | Each item with description, SKU, quantity, unit price and amount, plus freight, insurance, duties and fees. |
| Summary | Subtotal, discount, any tax, total, the deposit requested and the balance left for the final invoice. |
| Additional information | Payment terms and methods, a line saying it is not a demand for payment or a tax invoice, and who prepared it. |
Why use a proforma invoice template?
The proforma does its work before money moves. It fixes the terms in writing while both sides can still change them.
- PrepaymentIt sets out exactly what the buyer gets once they pay, which is why it suits new customers or anyone whose credit you cannot yet judge.
- Buyer approvalPurchasing teams need a priced document to raise a PO or get budget signed off.
- FinancingA buyer arranging a letter of credit or a loan for the purchase usually has to show the bank a proforma.
- Cross border paperworkImport licences and customs prep often start from the proforma, long before the commercial invoice exists.
- No surprises laterWhen the final invoice matches the proforma line for line, it gets approved without a call.
- Price protectionA validity date stops a months old quote being held against today's material costs.
Proforma invoice vs quote vs final invoice
Four documents, four moments in one order.
| Document | When | What it does |
|---|---|---|
| Quote or estimate | Early, while scope is open | An informal price the buyer can shop around. |
| Proforma invoice | Once terms are agreed, before shipping or work | A formal offer laid out like an invoice, used for deposits, approval and financing. Not usually treated as legally binding and not payable as a bill. |
| Final or commercial invoice | On dispatch or completion | The binding request for payment, with its own invoice number, and the document customs relies on for imports. |
| Receipt | After payment lands | Confirms money was received. |
How to set the deposit, validity date and delivery estimate
These three fields decide whether the offer turns into an order on your terms.
| Field | How to use it |
|---|---|
| Quote valid until | The last day the prices hold. The generator fills 30 days from issue; shorten it when material prices move fast. |
| Deposit requested | A share of the total paid before you order materials or book production. The preview shows the amount and the balance left. |
| Due date (deposit) | When the deposit must arrive to keep the delivery slot, normally on or before the validity date. |
| Estimated delivery | When the buyer can expect the goods, counted from deposit, not from the date you sent the proforma. |
| Payment terms | How the balance is settled: before shipping, on delivery, by letter of credit or on net terms from the final invoice. |
Is a proforma invoice a tax invoice?
No. That is why the generator prints a statement under the title and starts with no tax shown.
| Point | What it means for you |
|---|---|
| Mark it clearly | UK guidance says a pro forma should always be described as such and preferably carry the words "This is not a VAT invoice". |
| Not an accounting document | The same guidance treats a pro forma as having no place in the books of the business that sends or receives it. |
| Tax goes on the real invoice | Once payment arrives, a proper tax invoice is issued. Show an expected tax figure on the proforma only if it helps the buyer budget. |
How to convert a proforma into the final invoice
Same lines, new status. Change what actually changed and nothing else.
- Switch the documentSet Document to Final invoice. The title, the statement and the totals block change to suit a bill.
- Give it a final numberEnter a number from your normal invoice sequence. The proforma number stays on the sheet as a reference.
- Update quantitiesAdjust any line that shipped short or changed, and add real freight if it differed.
- Credit the depositThe deposit is shown as received and comes off the total, leaving the balance due.
- Add tax if it appliesApply the rate for the place of sale now that the sale has happened.
Industry specific tips for proforma invoicing
Habits that turn offers into paid orders.
- Send it soon after the scope callBefore you start work or order stock, so nothing is built on a price the buyer has not accepted.
- Write delivery steps outLead time, any review or approval the buyer must give, and the date.
- Price freight honestlyA low freight guess gets corrected on the final invoice, and buyers remember that.
- List payment methodsACH, wire, card or letter of credit, stated up front so the deposit is not held up.
- Add customs details for exportCountry of origin and delivery terms help the buyer's broker prepare.
- Keep one number per offerA revised offer gets a new number or a revision suffix.
A proforma only gets written if someone answered the enquiry.
Buyers ring two or three suppliers with the same request, and whoever answers first tends to win the chance to quote. ServiceAgent answers your business line day and night, notes what the caller wants to order and by when, and books the scope call for you, so more enquiries end up as priced offers on your desk.
Book a free demoFrequently asked questions
Plain answers on proformas, deposits and using this generator.
Book a free demoWhat should a proforma invoice include to make it valid?
The title Proforma Invoice, seller and buyer details, a proforma number, issue date and validity date, each item with quantity, unit price and amount, freight and other charges, the total, payment and delivery terms, and a statement that it is not a demand for payment.
When should a proforma invoice go to the customer?
Right after you and the buyer agree scope and price, and before you ship goods, start work or ask for a deposit.
What is the difference between a proforma invoice and a quote?
A quote is a looser price estimate. A proforma is laid out like the invoice that will follow, with terms, delivery and deposit, so a buyer can use it to approve, finance or prepay the order.
What is the difference between a proforma invoice and a receipt?
A proforma comes before payment and sets out what will be paid for. A receipt follows later, once payment has been received.
What layout works for a proforma invoice?
Title and number at the top, seller and buyer side by side, then delivery terms and dates, an itemised table, totals with the deposit, and terms and the not a demand for payment line at the bottom. The generator lays it out in that order on one PDF page.
Is a proforma invoice template or a proforma invoice generator better?
A blank template is fine for one offer. A proforma invoice generator multiplies the lines, works out the deposit, keeps your seller details saved and converts the same sheet into the final invoice, which saves time when you send several offers a week.
How does a proforma invoice generator work step by step?
Fill in the seller, the buyer and delivery terms, add goods and charges, then set validity, deposit and terms. Totals update live and Download PDF saves the offer.
How many minutes does a proforma invoice take online?
Usually a few minutes. Your seller details stay saved in the browser, so later offers are mostly the item lines.
Is a proforma invoice legally binding?
Not usually. It is a preliminary offer sent before the work or delivery. The final invoice is the binding request for payment.
Can I ask for a deposit on a proforma invoice?
Yes, that is one of its main uses. Set the deposit percentage and due date; the PDF shows the amount and the balance left for the final invoice.
Does a proforma invoice get a number?
Yes, give each offer its own proforma number. The final invoice then takes a number from your normal invoice sequence.
Is my proforma saved or sent anywhere?
No. It stays in this browser until you press Reset, and nothing is uploaded.
Leads growth and product marketing for ServiceAgent at SaaS Labs, where he has worked in product marketing since 2020. Writes ServiceAgent's coverage of AI call answering, CRM and home services operations.
Published by ServiceAgent, the AI front office for service businesses. This page is a billing aid, not tax, legal or customs advice. How deposits, tax and import documents are handled depends on your country, state and contract, so confirm with your tax agency, broker or accountant.