Proforma Invoice Format: Free Templates & Examples

What is a Proforma Invoice?

A proforma invoice is a preliminary bill of sale sent to buyers before a product or service is delivered. It outlines the estimated cost, terms, and details of the transaction but does not serve as a final invoice. Businesses use proforma invoices to provide clarity on pricing and terms before completing a sale.

What is a Proforma Invoice Template or Format?

A Proforma Invoice Template or Proforma Invoice Format is a pre-designed document used by businesses to create professional proforma invoices quickly. It serves as a blueprint containing all the essential fields required in a proforma invoice, allowing companies to customize and use it for various transactions.

Sample Proforma Invoice Format

There’s no standard industry guideline dictating the proforma invoice format – it may even look like a sales invoice. However, businesses must have a standard proforma invoice format to make it consistent across all business transactions. Here is a sample proforma invoice format or template for your reference.

Proforma Invoice Format: Key Elements

A standard proforma invoice format includes the following essential details:

1. Seller and Buyer Information

• Business name, address, and contact details of both parties.

2. Invoice Number and Date

• Unique proforma invoice number for tracking.
• Date of issue and validity period.

3. Product or Service Details

• Description of goods or services.
• Quantity, unit price, and total amount.

4. Payment Terms

• Accepted payment methods (bank transfer, credit card, etc.).
• Due date and any applicable discounts.

5. Taxes and Additional Charges

• GST, VAT, shipping costs, or any applicable fees.

6. Signature and Company Seal (Optional)

• For added authenticity and approval.

Why Use a Proforma Invoice | Benefits of Using Proforma Invoices

• Provides Cost Estimates Before Finalizing a Deal

A proforma invoice helps businesses provide a detailed price estimate to clients before the final invoice is issued. It allows buyers to review the charges and make necessary adjustments before confirming the order.

• Reduces Disputes & Enhances Transparency

A proforma invoice ensures buyers and sellers agree on the terms before the transaction is completed. It minimizes misunderstandings related to pricing, taxes, or delivery details, preventing disputes later.

• Improves Cash Flow Planning

Businesses can forecast revenue and plan inventory better by issuing proforma invoices in advance.Customers can also arrange payments in advance, reducing financial uncertainty.

• Saves Time in Creating Final Invoices

Since a proforma invoice already contains detailed billing information, it can be quickly converted into a tax invoice once the sale is finalized. This reduces administrative work and speeds up the invoicing process.

• Strengthens Customer Relationships

Sending a professional proforma invoice makes the sales process more transparent, increasing customer trust. It helps businesses present a clear, itemized document that reassures customers about pricing and payment terms.

• Helps in Securing Bank Loans or Credit Approvals

Many financial institutions require proforma invoices as proof of an upcoming transaction before approving trade credit or loans. Businesses can use them to secure funding for bulk purchases.

How to Create a Proforma Invoice

Follow these simple steps to create a proforma invoice:

1. Choose a Format – Select Word, Excel, or PDF templates.
2. Enter Business Details – Add seller and buyer information.
3. List Items or Services – Clearly mention products, quantity, and price.
4. Include Payment Terms – Define due dates and preferred payment methods.
5. Calculate Total Amount – Add applicable taxes and shipping fees.
6. Review & Send – Double-check details and send the invoice to the buyer.

Creating a Proforma Invoice in Word, Excel, and PDF

Creating a Proforma Invoice Format in Word

Microsoft Word is a great option for businesses that need a customizable Proforma Invoice template. Follow these steps:

1. Open Microsoft Word – Launch Word and open a blank document or use a pre-designed PO template.
2. Set Up the Header – Add your company name, logo, address, and contact details at the top.
3. Enter Buyer & Vendor Information – Include the name, address, and contact details of the buyer and supplier.
4. Assign a PO Number – Create a unique proforma invoice number for tracking.
5. List Order Details – Add a table with columns for item description, quantity, unit price, and total price.
6. Specify Payment & Delivery Terms – Clearly define payment methods, due dates, and delivery instructions.
7. Review & Save as PDF – Double-check details, then save the file as a PDF for easy sharing.

Creating a Proforma Invoice Format in Excel

Excel is ideal for businesses that need automated calculations in their POs. Here’s how:

1. Open Microsoft Excel – Launch Excel and open a blank workbook.
2. Create Column Headers – Set up columns for PI number, supplier name, item descriptions, quantity, unit price, total price, tax, and grand total.
3. Use Formulas for Calculations – Apply formulas like =B2*C2 for total price and =SUM(D2:D10) for the total amount.
4. Include Payment & Shipping Terms – Clearly state due dates, shipping costs, and payment methods.
5. Format for Readability – Adjust font size, borders, and colors for a professional appearance.
6. Save & Share – Save the file as Excel or PDF for digital storage and sharing.

Creating a Proforma Invoice in PDF

A PDF Proforma Invoice ensures document security and standardization. Follow these steps:

1. Use a PDF Editor or Online PO Generator – Open software like Adobe Acrobat or an online PO creator.
2. Upload or Choose a Template – Select a pre-made PI template or upload an existing document.
3. Fill in Company & Vendor Details – Enter business name, contact info, and supplier details.
4. Input Proforma Invoice Information – List items, pricing, and payment terms.
5. Add Digital Signatures (Optional) – Use a digital signature to authorize the PO.
6. Download & Send – Save the file and email it directly to the vendor.

A proforma invoice is a valuable document that helps businesses streamline transactions and set clear customer expectations. By using a well-structured proforma invoice format, businesses can enhance professionalism, improve communication, and prevent misunderstandings.

Who Can Use Proforma Invoices?

Proforma invoices are widely used across various industries and business types. They are particularly beneficial for businesses that need to provide price estimates, confirm orders before finalizing a sale, or facilitate international trade.

Exporters & Importers

Proforma invoices are crucial for international trade as they help in customs clearance and determining applicable taxes and duties. Exporters send a proforma invoice to buyers to get pre-approval on pricing and shipping terms before dispatching goods.

Manufacturers & Wholesalers

Manufacturers & Wholesale businesses often deal with bulk orders and require confirmation from buyers before production or shipment. A manufacturer may issue a proforma invoice to a wholesaler to finalize order quantities, pricing, and delivery dates before production begins.

Freelancers & Service-Based Businesses

Service providers often send proforma invoices to outline project costs, timelines, and terms before starting work. A web developer or graphic designer may use a proforma invoice to give a client a detailed estimate before finalizing a service agreement.

e-Commerce & Retail Businesses

Online stores may issue proforma invoices to confirm an order before requesting payment, especially for high-value or custom orders. A customer purchasing bulk electronics online may receive a proforma invoice before making the final payment.

Contractors & Construction Companies

Construction projects involve multiple phases, and a proforma invoice helps define costs for materials, labor, and project timelines before work begins. A construction company provides a proforma invoice for a home renovation project, detailing expected costs and services.

Businesses Dealing with Custom Orders

Companies that sell customized or made-to-order products often require confirmation before finalizing the order. A furniture company providing custom-made office desks will send a proforma invoice to confirm specifications and pricing before production starts.

Healthcare & Pharmaceutical Companies

Medical suppliers and pharmaceutical companies use proforma invoices to quote costs for bulk medical supplies or medicines before dispatching them. A hospital ordering surgical equipment receives a proforma invoice detailing item costs, expected delivery dates, and applicable taxes.

Advertising & Marketing Agencies

Marketing agencies provide customized service packages, so a proforma invoice ensures clients agree to pricing before campaigns start. A digital marketing agency sends a proforma invoice for a Google Ads campaign, listing expected ad spend, service fees, and campaign duration.

Any business that needs to confirm pricing, outline transaction terms, or secure pre-payment approvals can benefit from using a proforma invoice. Companies can avoid payment disputes and improve financial planning by providing a transparent estimate before issuing a final invoice.