Invoicing Basics
Proforma Invoice vs Invoice: What's the Difference?
What is the difference between a proforma invoice and an invoice? A proforma invoice is a preliminary document that estimates what a customer will be charged before the work is done or goods are delivered. A regular (final) invoice is a formal request for payment issued after the sale or work. A proforma is not usually treated as a final bill.
What Is a Proforma Invoice?
A proforma invoice lists the expected goods or services, prices, and terms so the customer can approve them, arrange payment, or use it for things like customs or a purchase approval. It acts like a quote with invoice-style formatting. It normally states that it is a proforma so it is not mistaken for a final invoice.
Proforma Invoice vs Invoice
| Proforma invoice | Final invoice | |
|---|---|---|
| Purpose | Estimate or preliminary bill before the sale | Formal request for payment |
| Timing | Before work or delivery | After work or delivery |
| Legally a bill? | Usually no; it is a preview | Yes, used for accounting and payment |
| Common uses | Approvals, prepayment, international shipping | Everyday billing and bookkeeping |
When Should You Use a Proforma Invoice?
- When a customer needs written pricing to approve a purchase.
- When you require prepayment or a deposit before starting.
- When shipping internationally and paperwork requires a value statement.
- When the final price may change slightly after delivery.
Rules and customs requirements differ by country, so check what applies to your situation.
What to Include on a Proforma Invoice
Include the same details as a normal invoice: your and the customer's details, a reference number, date, item descriptions, quantities, prices, taxes, total, and payment terms, plus the word "Proforma" clearly at the top. See what should be included on an invoice for the full list.
Frequently Asked Questions
Is a proforma invoice the same as a quote?
They are similar. Both estimate costs before the work is done, but a proforma invoice is formatted like an invoice and is often used for prepayment, approvals, or shipping documents.
Can I ask for payment with a proforma invoice?
Yes, many businesses ask for prepayment against a proforma invoice. After the sale is completed, issue a final invoice and, if needed, a receipt. See invoice vs receipt.
Create Your Invoice Online
Once the work is done, create your final invoice with our free generator. If you are new to invoicing, start with how to create a professional invoice.