A proforma invoice is a document sent by the seller committing the buyer to deliver the product or service at a specified time and price. It is not a legal document but it shows that the seller and the buyer are mutually agreed with the product and price of the product to be delivered.
It is generally issued after the quotation and before the invoice. It holds all the information related to the goods or services including tax, commission, discounts, shipping details and shipping cost.
A proforma invoice is a non-legal document issued by the seller committing to delivering the product at a specified date and time. At the same time, an invoice is sent by the buyer to the client after the product is delivered. Both documents have similar information, but still, there are some significant differences.
Proforma invoice is not a legal document. In contrast, an invoice is a legal document.
When a proforma invoice is issued, the client doesn't need to make the payment. However, the buyer can ask for the advance payment. Whereas when the seller issues an invoice, it is essential to make the payment for the product delivered to the buyer.
Proforma invoice is not a legal invoice, so the seller can not consider the proforma invoice as account receivable.
The buyer can not consider the proforma invoice as account payable.
Proforma invoice is issued before the product is delivered or asking for the advance payment or half payment. Invoice is issued before the payment is made, asking for the payment.
Proforma invoice helps both the buyer and seller to streamline the sales and purchase process. The buyer can quickly know when the product will get delivered, shipping details, price of the product, payment mode etc. by looking at the proforma invoice.
Primarily it is used when the product is to be delivered so that the delivery process can be more straightforward for both parties.
Proforma invoice is used by the seller asking for the advance payment.
Creating proforma invoice helps both the parties to get the information of the transaction that takes place in the future. Here are some of the reasons to use a proforma invoice in the business.
Detailed Information - A proforma is similar to the invoice, so it becomes easy for the customer to know what to expect from the seller. It holds all the information like product name, shipping details, total amount etc.
Advance Payment - Proforma invoice can also be used for the advance payment. When the buyer is satisfied with the proforma invoice, the seller can ask for the advance and then can deliver the product.
Exporting- Many a times, when performing the transaction between the two countries, there is a need of custom paperwork for calculating the custom duties. Here, proforma invoice can be used to showcase the shipping details and shipment amount.
Quick Invoice - Once a proforma invoice is accepted and finalized by the both parties, it become easy for the seller to use the same proforma invoice to make a tax invoice. Using Refrens proforma invoice, you can easily convert proforma invoice to invoice with one click.
The buyer can make the client's advance payment based on the proforma invoice issued by the seller. There is no such compulsion to make complete payment or compulsory payment for the proforma invoice raised.
If the seller asks for payment, then you can pay the proforma invoice. Once the payment is made, a proforma invoice can be used as reference the invoice to be created in the future. It helps to avoid the misunderstanding about the payment and how much amount is due.
When creating the invoice, a reference number is added to the invoice, which is eventually the proforma invoice number. It helps both the buyer and the seller to record the transaction in their accounting.
As you know, a proforma invoice is not a legal document and can not be used to record as account receivables. So the seller has to send the actual invoice if the buyer accepts the proforma invoice. Here, the seller sends the invoice asking for the payment, once the product is delivered to the customer.
So when selecting any software, you must look for the feature which says “Convert to Invoice”. It helps convert the proforma invoice to invoice without creating the invoice from the scratch, which saves your time and effort. Using Refrens proforma invoice, you can easily convert the approved proforma invoice to invoice easily with just one click. The best part is all these documents get interlinked with each other so that you can use the documents for further understanding or reference.
You can create a proforma invoice using the Google Docs template. Creating the proforma template is easy on Docs, but it is excruciating to perform calculations on Google Docs. With Google Sheets, it is very easy to do the calculation with formulas but making a proforma template is very time-consuming.
You have to put a lot of other efforts when you are using either Google Docs or Sheets, both have their own limitations. So you must use a proforma invoice generator like Refrens, which helps to create a proforma invoice instantly and easy to change the templates.
The format of both the proforma invoice and the tax invoice is the same. The Proforma Invoice Template includes the same information as a tax invoice. The proforma invoice must include the following:
Title - Add the title “PROFORMA INVOICE” at the top when creating a proforma so that clients can differentiate between invoice and proforma invoice.
Number & Date - It is essential to add a proforma invoice number. Add the issue date and due date of the proforma invoice. You can also add the reference number like the purchase order format number or quotation number created using quotation maker.
Business Logo - It is not necessary to add the logo but adding one can increase the credibility of the company.
Billed By - In the billed by section, add the business details like name, address, email, phone number. You can use custom fields to add more details as per the requirement.
Billed To - Same as billed by, billed to is the section where you can add the client details.
Item section - Here, add the product or service name, description, quantity, and rate of the product or service. You can also add custom columns to share more information about the product or service you are offering.
Terms & Conditions - add the terms and conditions of the company and product you offer. You can also add the payment mode for advances.
Additional Information - you can use the notes section to add notes and attachments to add files like PDF, Excel, Word or images.
Using a proforma invoice template, you can customize each and every detail of the proforma invoice. Add your personal/company logo, choose from the varied options of template and colors. Add multiple custom fields to the address section that are missing as per the requirements of your proforma invoice.
Add multiple columns to the product/service section to describe more about the product or service you are going to offer. Enable discount column with just one click. Easy to add additional charges and to change the currency format. Refrens provide the feature of changing the font heading of your proforma invoices.
Creating a proforma invoice is as essential as making it attractive and Once the proforma invoice is created, now it's time to make it attractive by customizing the proforma invoice. Select the best templates from multiple proforma templates that match your business requirements. Choose from 240+ different colors and font headings.
When the customization is complete, you will get the option of sending the proforma invoice via email. The best and most professional way to send the invoice to the clients. You can easily track the invoice to check whether the client has opened the email or not. You also get the option of downloading the proforma invoice and saving it as a PDF.
Professional Proforma Invoice Template
Letterhead Design Proforma Invoice Template
Business Proforma Invoice Template
Modern Proforma Invoice Template (Loved by Freelancers)
Print-Friendly Proforma Invoice Template
Free Forever. No Cost. No Hidden Charges.
Create unlimited proforma invoices.
Client Management - Save all your client data and avoid retyping of details.
Beautifully designed Proforma Invoice Templates with more than 240+ colors.
Customizable Proforma Invoice - add additional fields, columns, change number format.
Essential Business Reports - Proforma Invoice Reports, Client Reports etc.
Add multiple users and businesses.
Check all proforma invoice status - Paid, Overdue, Unpaid, Draft.
Options to share proforma invoice - Download as PDF, email, print, share via WhatsApp or by copying the link.
Create full-featured and attractive online proforma invoices for your clients with Refrens proforma invoice generator. Beautifully designed proforma invoices especially for freelancers, agencies and small businesses. With our user-friendly proforma invoice generator, create your proforma for the products or services you provide. No re-entering of data is required for converting approved proforma to invoices using invoice maker.
Use proforma invoice templates with magic color and customize the proforma the way you want. Refrens proforma invoice generator also supports multiple currencies and more than 200+ countries. Easy to share the proforma via email, download PDF, print it or you can share it through WhatsApp share.
When searching for the perfect proforma invoice template, you come across different pricing models that can indirectly increase the cost of your business. So finding budget-friendly software is necessary especially for freelancers and small businesses.
Some software charges for each invoice you create Whereas some software charges a monthly or yearly fee. Then there is software like Refrens which is completely free. There are no hidden charges. No signup or setup fee. You can create unlimited proforma invoices without paying a single penny. You will get the same feature as you get in paid software.
Access all the essential features like recurring invoices, proforma invoice templates, reports, accept payments online, client management and many more.
All the essential tools required for small businesses to run the business seamlessly is provided by Refrens. It includes tools like invoice generator, quotation & estimate maker, expense management, purchase order generator. Other than these tools Refrens is also a marketplace that helps businesses to complete the work or project by connecting them with the best freelancers or agencies.