Proforma Invoice Template
PandaTip: This is a template for a Proforma Invoice. A Proforma Invoice is a non-fiscal invoice (or informal request for payment). Proforma Invoices do not form part of the accounting records of the company and, once paid, proformas are normally discarded and a formal invoice is raised to replace them. Proforma Invoices are commonly used where the company requesting payment is unsure as to whether the client will make payment or for some reason does not want the transactions to appear in their books until it is paid (usually either to avoid paperwork, to prevent artificially inflating their P&L or for other accounting or tax reasons). Please note that there may be local laws or rules surrounding the use of proforma invoices instead of normal invoices (especially if they contain VAT or sales tax). If you are in doubt about whether it is appropriate to use a Proforma Invoice you should seek the opinion of a local accountant. If you would prefer to start with a blank invoice you can use our Blank Invoice Template. For sale of goods or services you should start with the Sales Invoice Template or the Service Invoice Template. If you use this Proforma Invoice Template for a company you should include all details from your company’s letterhead (full company name, registration number, logo etc).
Proforma Invoice Number: [PROFORMA NUMBER]
PandaTip: Proforma Invoice numbers do not really matter since Proforma Invoices are not part of the accounting record and are generally discarded when paid and replaced with a formal invoice. However it can be helpful to adopt some sort of numbering system to help keep track of payments against proformas. We suggest that you use a completely different numbering convention to the one use for your invoices to avoid inadvertently including a Proforma Invoice in the companies books or sales tax calculations. If you are worried about keeping track of the numbers the simplest option is to use “PF” (to remind you that this is a Proforma Invoice, not a fiscal invoice) followed by the date in reverse (e.g. PF/140704 for a Proforma Invoice raised on 4th July 2014).
PandaTip: This is where you describe the goods and services provided. You would normally see something like the following examples: “Retainer for legal services (ten hours, senior associate)”; “Provision of professional services outlined in attached timesheet”; “Sale of Car: 1978 Fiat Panda registration number 123456”; “Painting of garage door, 123 Main Street, Little Bigtown”; “Performance of agreed services under our contract dated 01 July 2014”; “January retainer fees.” Alternatively if you want to itemize items with line totals you should look at our Services Invoice Template and our Sales Invoice Template.
Amount Due: [AMOUNT DUE]
PandaTip: Don’t forget, when dealing with cross-border transactions you should include the currency.
Payment terms: [PAYMENT TERMS]
PandaTip: Typical payment might include the following: “Immediately on receipt of invoice”; “within 7 days”; “within one calendar month”; “50% deposit on receipt of invoice and 50% balance within 7 days of the completion of the work”; “$1000 (less $250 cash deposit) = $750 due immediately.”
Remittance: [REMITTANCE METHODS]
PandaTip: Here you should list all the ways that you can be paid. If you accept payment by wire you should include your full bank coordinates as well as the bank’s name and address. Remember to check with your bank if there is a charge for inbound payment, especially if you are dealing in different currencies. You should also be sure to include any reference you wish the payee to include (such as “ensure that invoice number is referenced when making payment”). If you accept checks you may wish to specify “checks must be account payee only” and if you want to receive funds by Paypal be sure to include your Paypal email address.
Shipping: [SHIPPING DETAILS]
PandaTip:If the invoice contains goods which need to be shipped (or items which need to be collected) you should include this on the invoice. For example: “Goods will ship within 48 hours of receiving cleared payment”; “Car can be collected from 1123 Sudden Valley Estates any time from noon next Thursday.”
NB: this proforma invoice is a non-fiscal document. It should not be used for accounting purposes and does not establish a contractual relationship between us and the party to whom it is addressed. On receipt of payment we will promptly issue a formal invoice for fiscal and accounting purposes.