Proforma Invoice Generator

A proforma invoice is a good-faith estimate of what a sale will cost, sent before the goods ship or the work is done; a normal (commercial) invoice is the actual demand for payment, issued once the sale is confirmed. The proforma shows the same line items, quantities, prices, and tax, but it is clearly labelled proforma and does not create an account-receivable entry or a tax point. Buyers use it to approve a purchase, set up payment, apply for an import licence, or arrange financing. When the deal goes ahead, the seller issues a matching commercial invoice with a real invoice number, and that is the document both sides book.

In most jurisdictions a proforma invoice is not a legally binding demand for payment and is not booked as a sale, because it is issued before the transaction is committed. It is closer to a detailed quotation: it tells the buyer what to expect and commits the seller to those terms for a stated period, but it does not oblige the buyer to pay in the way a commercial invoice does. Because rules differ by country, especially for customs and VAT, confirm how proforma documents are treated where you trade. Receipt Caker produces the document; it does not give legal or tax advice, so check the local requirements before you rely on it.

Send a proforma invoice when a buyer needs the details of a sale before it is finalised: to get internal purchase approval, to arrange an advance payment or a letter of credit, to declare goods for import, or simply to confirm the scope and price of an order. It is common in international trade and with new customers who want a firm figure before committing. Once the buyer accepts and the goods or services are supplied, replace it with a commercial invoice carrying a unique invoice number. Build the proforma in the Receipt Caker generator, then reuse the same line items for the final invoice so the two documents match.