A pro forma invoice is the initial bill of sale shared with customers before the delivery of goods or services. It outlines the terms of the transaction, including a description of the items, their prices, and any additional charges, such as shipping details and taxes. 

Unlike a standard invoice, a pro forma invoice is not a demand for payment but rather an estimate provided to inform the buyer and prevent misunderstandings. It is commonly used in international trade administration to declare the value of goods for customs purposes, ensuring transparency and compliance.

Follow these simple steps to use the pro forma invoice template from Zomentum effectively:

• Download the Template: Access the pro forma invoice template from Zomentum’s platform and download it in your preferred format (PDF, Word, or spreadsheet formats like Excel).
• Customize the Header: Add your company logo, name, address, phone number, and contact details to the header of the pro forma invoice template.
• Fill in Client Information: Enter the client’s name, company, address, and contact details in the designated fields.
• Input Invoice Details: Specify the date of issue, invoice number, and due date to ensure accurate tracking and timely payments. This step is crucial for the purchase approval process.
• Describe Products/Services: List the products or services provided, including descriptions of the goods, rates, quantities, and subtotals. This ensures clarity and transparency in the invoice pro forma.
• Calculate Totals: Add any applicable taxes or discounts and calculate the total amount due. The template will automatically compute these values for you.
• Add Payment Terms: Clearly mention the payment terms, including the deposit required and any other conditions. This helps you set clear expectations for your clients.
• Review and Finalize: Double-check all the information entered to ensure accuracy. Make any necessary adjustments before finalizing the pro forma invoice.
• Send to Client: Once finalized, send the proforma invoice to your client via email. Ensure to include any additional instructions or contact information for queries.

Our template offers pre-designed layouts, customizable fields, and easy integration with accounting software, saving you time and effort.

A pro forma is commonly used by exporters and importers to provide an estimate of the transaction value for customs purposes. Manufacturers and suppliers use it to outline the terms of a sale before finalizing the transaction.

Service providers, such as consultants and freelancers, can also use a proforma invoice to give clients a detailed estimate of costs before commencing work. Essentially, any business or professional that needs to provide a preliminary bill of sale can benefit from using a proforma invoice template.

An invoice is a final document issued after goods or services have been delivered, detailing the transaction, including the final price, payment date, and payment method. It serves as a request for payment and is recorded in the seller’s and buyer’s accounting records. 

In contrast, a pro forma invoice is a preliminary document issued before the delivery of goods or services. It provides an estimate of the transaction, including descriptions, quantities, and prices, but does not demand payment. The pro forma invoice is used to inform the buyer and prevent misunderstandings, often in international trade for customs purposes.

People issue pro forma invoices primarily to provide an estimate of the transaction details before the final sale is completed. This helps in setting clear expectations between the buyer and seller, reducing the likelihood of misunderstandings. 

Pro forma invoices are regularly used in international trade to declare the value of goods for customs purposes, ensuring a smooth delivery process. It also assist buyers in securing financing or import licenses by providing a detailed overview of the transaction.

By issuing a pro forma invoice at the appropriate time, you can improve communication, manage expectations, and strengthen your business relationships. 

A proforma invoice should be issued:

Before a contract is signed: To provide a detailed overview of the proposed goods or services and their costs, facilitate negotiations and ensure both parties are on the same page.

When requesting a deposit or advance payment: To secure a commitment from the customer and cover upfront costs like materials or labor.

For customs purposes: To declare the value of goods that are being imported or exported to ensure compliance with customs regulations.

For internal planning: To estimate revenue and track project progress.

No, a pro forma invoice is not legally binding. It acts as a document that specifies the proposed terms of a transaction but does not create a contract. A legally binding agreement typically requires a signed contract or purchase order.

However, while not legally binding, a pro forma invoice can be used as evidence of an agreement or intention to enter into a contract. It can also be useful in addressing disputes or misunderstandings.

Using a Pro Forma Excel Template offers several advantages for businesses. Firstly, it simplifies the process of creating detailed financial projections, allowing for accurate forecasting of income, cash flow, and balance sheets. This helps in making informed business decisions and strategic planning. 

Secondly, the template ensures consistency and professionalism in financial documents, which can impress clients and stakeholders. Additionally, it saves time by automating complex calculations, reducing the risk of errors. 

A Pro Forma Excel Template can help enhance efficiency, accuracy, and clarity in your financial planning. Use the proforma invoice template from Zomentum to create professional invoices and impress your clients.