What is a proforma invoice? When and how to use one

In one line

A proforma invoice is a "draft" invoice sent before you deliver, so the buyer knows exactly what they will be charged. It is not a demand for payment and is not used for tax.

When businesses use one

• To ask for an advance or deposit before starting work or shipping goods.
• For customs and import paperwork, so the buyer can arrange a letter of credit or import licence.
• When the buyer's purchasing team needs a document to approve the spend.
• When the final quantity or price may still change.

Proforma vs quote vs invoice

• Quote or estimate: an offer with a price. The buyer may accept or decline.
• Proforma invoice: the expected final bill, sent once the buyer has agreed, before delivery.
• Invoice (or tax invoice): the actual bill after delivery. It is what you account for tax on and what the buyer pays.

What to put on it

Use the same details as a normal invoice (your details, the buyer, items, prices, tax, terms) and title it clearly "Proforma invoice". Give it its own number series (for example PRO-001) so it is not confused with your tax invoices, and add a validity date.

Turning it into an invoice

When you deliver, issue a proper invoice with your next invoice number. In Fliss Invoice, make the proforma as an estimate and convert it to an invoice in one click when the job is done.