Free Proforma Invoice Template

What a proforma invoice is

A proforma invoice is a quotation in invoice form. The seller sends it before the sale is final so the buyer, the buyer's bank and the import authorities can see what will ship, at what price and on what terms. It looks like an invoice, with the same parties, items, prices and totals, but it is not a demand for payment and not the invoice the buyer books: that is the commercial invoice, issued when the goods ship.

Because the buyer may act on it (open a letter of credit, apply for a licence, send a deposit), the proforma should be complete and its terms should not change without the buyer agreeing. The US International Trade Administration describes it this way and lists what it should contain; this template follows that list.

When the buyer needs one

• Import licence or permit

  Many countries ask the importer for a proforma invoice before they issue an import licence or permit for the goods.

• Letter of credit

  The buyer's bank opens a letter of credit against the proforma: the amounts, the Incoterm, the shipping date and the validity date on it become the terms the bank checks.

• Pre-shipment inspection

  Where the destination requires an inspection before shipment, the inspection company is contracted on the basis of the proforma.

• Currency transfer

  In countries with exchange controls, the importer uses the proforma to arrange the transfer of hard currency to pay you.

• Prepayment

  When the buyer pays a deposit or the full amount in advance, the proforma is the document they pay against; the commercial invoice follows when the goods ship.

• Samples and goods without a sale

  Customs still needs a value for samples, gifts, replacements and other goods that are not sold; a proforma states that value when there is no commercial invoice.

What goes on a proforma invoice

• Seller and buyer

  Full names and addresses, a contact, and the tax or VAT number where the buyer's bank or customs will ask for it. Add a ship-to address when the goods go somewhere else.

• Number, date and validity

  A number the commercial invoice can refer to later, the date of issue, and the date the offer expires. The generator suggests a number like PI-20261015-01 and 30 days of validity.

• Buyer's reference

  The buyer's purchase order or enquiry number, so their bank and accounts team can match the proforma to the order.

• Items with unit and extended prices

  Each item with its description, quantity, unit and unit price, and the line total. Add the HS code when the buyer's broker has asked for it; the column appears when a line carries one.

• Incoterm, payment and shipping date

  The Incoterms 2020 rule with the named place or port, the payment terms (deposit, balance, letter of credit) and the estimated shipping date.

• Currency, freight and insurance

  State the currency once and show freight and insurance as separate amounts when the Incoterm puts them on you, so the total matches what the buyer's bank will see.

Incoterms 2020 in one paragraph

Incoterms are eleven three-letter rules published by the International Chamber of Commerce that say where the seller hands over the goods, who arranges and pays for carriage and insurance, and where the risk passes. Seven apply to any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU and DDP) and four to sea and inland waterway transport (FAS, FOB, CFR and CIF). The 2020 rules are the current set; they replaced DAT with DPU. Write the rule with a named place, "FCA Dayton, OH" or "CIF Port of Veracruz", because the rule alone does not say where the handover happens.

Proforma invoice, commercial invoice and quotation

Quotation

An offer to sell at a price, in whatever form the seller likes. Enough for a domestic deal; often too thin for a bank or a customs office.

Proforma invoice

A quotation in invoice form: same parties, items, prices and totals as the final invoice, plus Incoterm, payment terms, shipping date and validity. Sent before the sale is final; not a demand for payment.

Commercial invoice

The invoice issued when the goods ship. Customs in the buyer's country uses it to assess duties and taxes, so it adds HS codes, countries of origin, weights, the reason for export and a signed declaration.

When the goods ship, carry the same lines over to the commercial invoice template and add the customs fields.

For a domestic quote without export terms, the quotation generator is quicker.

Tips for a proforma the bank accepts first time

• Number it and refer back to it

  Give every proforma its own number and quote it on the deposit request and the commercial invoice. Banks match documents by number.

• Date the validity

  Prices, freight rates and exchange rates move. A validity date lets you requote without arguing about an old proforma.

• Name the Incoterm and the place

  "FOB" alone leaves the port open. "FOB Port of Savannah" tells the buyer, the forwarder and the bank the same thing.

• State the currency once

  Pick the currency at the top and keep every amount in it. A letter of credit opened in the wrong currency is a costly amendment.

• Keep it in step with the commercial invoice

  The commercial invoice should repeat the proforma's parties, items, prices and terms. A difference between them is what gets a shipment held.

• Label it clearly

  Keep the "not a tax invoice" line on unless the buyer's bank asks otherwise, so nobody books or pays it as the final invoice.