A proforma invoice is a document sent by the seller outlining the intention to deliver the goods or services to the customer at an estimated price. It holds all the information related to the goods or services including tax, commission, discounts, shipping details, and shipping cost.
As a proforma invoice is just an estimated document, it is not a true invoice and is also generally issued before the tax bill.
What is the difference between a proforma invoice and an invoice?
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. An invoice is issued before the payment is made, asking for the payment.
When should a proforma invoice be issued?
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.
Why use a proforma invoice for your business?
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 times, when performing the transaction between the two countries, there is a need for custom paperwork for calculating the custom duties. Here, the proforma invoice can be used to showcase the shipping details and shipment amount. You can also use a commercial invoice template for exporting business.
Quick Invoice - Once a proforma invoice is accepted and finalized by both parties, it becomes easy for the seller to use the same proforma invoice to make a tax invoice. Using a proforma invoice template, you can easily convert proforma invoices to invoices with one click.
Free Proforma Invoice Templates for Download in PDF
A proforma invoice template is a pre-defined format in a proforma invoice template or you can say design that allows the user to fill the information in a standardized format without any inconvenience. A proforma invoice template should be so well formatted that a non-accounting person can also create a proforma invoice easily within seconds.
However, still, the user can customize the proforma invoice as per the business requirement. Using Refrens proforma invoice template, you will get a range of invoice templates to choose from and can also change the color of the proforma invoice.
Moreover, Refrens proforma invoice format allows the user to customize by adding
Company or Personal Logo
Custom Fields & Columns
Change the color of the proforma invoice
Change the font headings of the invoice
Change Number Format
What are the Essential Elements of Proforma Invoice Template?
Title and Date - Your proforma invoice must have the title "Proforma Invoice". You must include the required details like Proforma invoice number, issue date, and due date. Also try to add other reference numbers like quotation numbers using quote template, quote template Word purchase order number with free purchase order template.
Add your details - add your company details like company name, address, state, country, and all your contact information.
Add client details - add your client details like name, address, contact information, state of supply, etc.
Product/service description - enter the product or service name with description, including tax value (if applicable), quantity, amount, discounts, commissions etc.
Shipping Details - If you are selling physical products you can easily add the shipping details like challan number, date, transport number, and shipping notes.
Terms and conditions - add the terms and conditions of the product/service and also of your company.
How to Customize Proforma Using Proforma Invoice Template?
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.
What are the different Proforma Invoice Templates?
Professional Proforma Invoice Template
Letterhead Design Proforma Invoice Template
Business Proforma Invoice Template
Modern Proforma Invoice Template (Loved by Freelancers)
How to create a Proforma Invoice online with Proforma Invoice Template?
There are two ways to create a proforma invoice online.
Creating Proforma invoice using Word or Excel
Creating Proforma invoice using Proforma Invoice Template
Issuing a Proforma Invoice Template Using Word or Excel
You can create a proforma invoice online by using the invoice templates in Word or Excel. But by doing this, you have to manually change the invoice number and then have to save the proforma invoice every time. You then have to manually convert it into an invoice which will be a time-consuming process.
After creating through Excel or Word, then you have to download the proforma invoice and have to send it to the client which takes much time.
Issuing a Proforma Invoice Using Proforma Invoice Template
The other method is to create a proforma invoice using a free proforma invoice template. Online proforma invoice maker helps you to create a proforma invoice easily with pre-built features. No need for retyping the client details every now and then which eventually saves your time.
Free invoicing software helps you create, manage, and send proforma invoices online and track all your invoices. It becomes easy and simple to finalize the invoice by merely converting the proforma invoice within a second.
It should mention the word “PROFORMA INVOICE” at the top so that the user won’t get confused by seeing the document.
Proforma invoice number
Add the proforma number. The number must be unique with the combination of alphanumeric. The invoice number should not be repetitive.
Add the issue date of the proforma invoice.
Add your details
Include business name, address, email, Tax, and other details.
Add client details
Include business name, address, Tax.
It includes the details of the product to be shipped. Like address, challan number, state, country, delivery date, transport.
Include the name and description of the product, quantity, rate, discounts etc.
PDF Proforma Invoice Template for Free
Create your proforma invoice within seconds by adding all the necessary details and customizing it as per your needs. You can add custom fields and columns with a single click. Fully customizable template for small businesses, freelancers, and agencies.
Print, email, share via WhatsApp or Download PDF proforma invoice and get paid faster. Once the proforma invoice is sent via email, you can easily track the invoice and can check if the mail was opened by the client or not. Refrens also provides the feature to download the duplicate copy and triplicate copy of the proforma invoice.
Should I make payment on a proforma invoice?
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 a reference document for the invoice to be created in the future. It helps to avoid 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.
How to Convert Proforma Invoice to Invoice?
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 a proforma invoice template, you can easily convert the approved proforma invoice to an 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.
Professional Proforma Invoice Template to Get Paid Faster
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 using the proforma invoice template. 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.
Add payment options like UPI(Unified Payments Interface), Debit or Credit cards, Net banking, wallets. You can also accept an amount using NEFT/RTGS or IMPS. Refrens support cards like Visa, Mastercard, Rupay, Amex. Easy to accept international payments. Your client can easily pay with a secure link. Refrens also give the facility to accept partial payments, advance payments, customize and manage invoices. Easily identify the status of your invoices like paid, unpaid, overdue.
What are the Benefits of Using Proforma Invoice Template?
Create proforma invoices for free.
Client Management - Save all your client data and avoid retyping of details.
Beautifully designed Proforma Invoice Templates with more than 240+ colors.
Create full-featured and attractive online proforma invoices for your clients with Refrens Proforma Invoice Teamplate. Beautifully designed proforma invoices especially for freelancers, agencies, and small businesses. With our user-friendly Proforma Invoice Template, 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 generator software.
Using Refrens Proforma Invoice Template, you can create and manage proforma invoices for free without any hassle. Our Proforma Invoice Maker also supports multiple currencies and more than 200+ countries. If you have a business with global clients, you can change the currency on your invoice with just one click. You can also add your bank details or payment links to get paid on time with Free Proforma Invoice Template.
Online proforma invoice creator provides you different proforma invoice templates to create proforma invoice online and also options to send invoices to the clients without any defer. Send invoices through Email or by sharing through WhatsApp. You can also print the invoice and download it as a PDF.
What is the Cost of Proforma Invoice Template?
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 100 documents 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. Refrens works on the revenue model of charging a small fee when you wish to receive payments online through a payment gateway.
Tools & Services provided other than Proforma Invoice Template
All the essential tools required for small businesses to run the business seamlessly are provided by Refrens. It includes tools like invoice maker, GST bill generator, quotation software, purchase order generator, expense management. 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.