Proforma Invoice Formats- Samples and Uses

Proforma invoices or proforma orders or estimates are used as preliminary bills or estimates to quote prices for the upcoming supply of goods or services. An estimate or proforma invoice is usually sent to a customer or client when they have committed to purchasing from you but do not have the final details of a transaction to confirm. 

Once the customer confirms details of the proforma invoice, the seller delivers the goods and issues a standard or formal invoice. The estimates can also indicate acceptance of the buyer for a payment, unlike quotations which need not necessarily be accepted for payment.

Benefits of having formats for proforma invoice

There is no specific law that gives guidelines for the exact format or presentation of a proforma invoice. However, in the changing times and technological advancements in business, a format is advised to be maintained. 

The following are some benefits of maintaining a particular format for proforma invoices:

• Having standard formats of proforma invoices help businesses to raise estimates on customers with the least effort and avoid errors.
• It helps in easy accounting or keeping a record of all the proforma invoices for every customer or item put for sale. 
• With standard format for a proforma invoice, the billing team can extract data to forecast sales with tools. It is because, in most cases, a proforma invoice has a precise sale price.
• By customising formats, businesses and their customers can track and assess the transport and shipment costs over a defined period.
• Businesses can stay on top of their finances and working capital.
• It supports businesses in embracing digital invoicing faster.

Various formats for a Proforma Invoice

A proforma invoice is a simple document used to initiate the billing process for your products. There are various formats to pick from, and you may edit them to meet your specific requirements. ClearOne provides businesses with the option to choose from several estimate styling options!

Here are some examples of proforma invoice templates or styles:

Ideal contents of a proforma invoice

The seller can make sure that his customers or buyers are on the same page by using a proforma invoice or an estimate. It acts as a precursor to the standard or final or tax invoice. 

• Make sure to not have ‘Tax Invoice’ in the header and to mention ‘Proforma Invoice’ or ‘Proforma Order’ or ‘Estimate’.
• Seller’s name, logo, tax identification number, and address.
• Buyer’s name, address, tax identification number, and contact.
• Mentioning invoice numbers is not compulsory or relevant.
• Proforma invoice date and expiry date for the proforma, usually around 30 to 60 days.
• List down the descriptions, quantities, and prices of each item sold in that order.
• Rate and amount of applicable taxes such as GST or customs duty.
• Total invoice amount payable by the buyer.
• Payment details, if needed.

Choosing the right format for a proforma invoice

Consider the supplies made to your customers and your company’s objectives when choosing the ideal proforma invoice template or an estimate format for your organisation. Also, the format depends upon how often you charge your customers, what payment methods you take, and how you track them when picking the proper format for your business. 

Fields of an estimate that can be customised

Depending upon the industry in which the business functions and the products offered, fields of a proforma invoice or an estimate can be customised. For instance, for billing in any pharma company, they must compulsorily quote the batch number of the medicines as per the guidelines.

Some generally customisable fields include a tax identification number and Import-Export Code (IEC). Purchase order numbers may or may not form part of the proforma invoice. If discounts or offers are active, fields can be used for mentioning the rate and amount of discount. The same applies to transportation costs as well.

With ClearOne Invoicing solution, add or remove fields for an estimate and make it suited to your business with a click of a button.