What is a proforma invoice?

A proforma invoice is a preliminary, quote-style document sent before a sale is finalised. It previews the goods, prices, and expected total, but it is not a demand for payment and does not create a payable debt.

Is a proforma invoice a legal demand for payment?

No. A proforma invoice is provisional and non-binding. Because no sale has been finalised, it does not create accounts receivable and should not be recorded as a true sale. A standard invoice issued after the order is confirmed is the binding request for payment.

How is a proforma invoice different from a regular invoice?

A proforma comes before commitment and its figures can still change, while a standard invoice is issued after agreement and its terms are fixed. A proforma should be labelled clearly and use a separate reference number rather than your live invoice sequence.

Proforma invoice: what it is and how to write one

Updated June 2026

A proforma invoice is a preliminary, quote-style document you send before the deal is final. It outlines what you intend to charge — but it is not a demand for payment and does not record a debt. Think of it as a good-faith estimate dressed up to look like an invoice.

What a proforma invoice actually is

The term "proforma" means "as a matter of form." A proforma invoice gives the buyer a detailed preview of a transaction before it's committed: the goods or services, quantities, prices, and the expected total. It's commonly used to confirm a price before work starts, to help a client arrange budget or financing approval, or in international trade so the buyer can clear customs and organise shipping. Crucially, it is provisional. Because no sale has been finalised, a proforma does not create a payable obligation and should not be entered into your accounts as a true sale or accounts receivable.

Proforma vs a standard invoice

A standard (or commercial) invoice is a binding request for payment issued after you've agreed to deliver and the buyer is on the hook to pay. A proforma comes earlier, before commitment, and carries no such weight. The numbers on a proforma can still change; the numbers on a final invoice are fixed terms. For that reason, a proforma should never use your sequential invoice numbering — label it clearly as "Proforma Invoice" so it can't be mistaken for the real thing, and issue a proper invoice once the order is confirmed.

What to include — a template

1The label "Proforma Invoice."

Mark it clearly at the top so no one treats it as a final bill. This is the single most important field.

2Your business and the buyer's details.

Names, addresses, and contact information for both parties, exactly as they'll appear on the final invoice.

3A reference number and date.

Use a separate proforma reference (not your live invoice sequence) plus the issue date and a validity period — for example, "Valid for 30 days."

4An itemised list with prices.

Each product or service, quantity, unit price, and line total, so the buyer can see exactly what they're agreeing to.

5Subtotal, estimated tax, and total.

Show the expected totals, noting clearly that figures are estimates and may be subject to change.

6Proposed terms.

Expected payment terms, delivery or shipping details, and any conditions — useful for budgeting, approvals, and customs.

Need the real invoice next?

Once the order is confirmed, turn your estimate into a proper numbered invoice with the free PaidPilot generator — line items, totals, and a payment link in under a minute.

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To recap: a proforma invoice is a forward-looking quote, not a bill. Send it to align on scope and price, keep it clearly labelled and numbered separately, and follow it with a true invoice when the buyer commits. That keeps your books accurate and your client's expectations clear from the start.