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.
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:
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:
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.
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.
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.