A proforma invoice is a document that is issued from the seller, the exporter, to the buyer, the importer, to confirm the buyer’s intentions of purchasing the order. This is different from a purchase order, in that the purchase order is issued from the buyer to the seller.
With this free proforma invoice template, you’ll have a very standard and organized document in which you can create a proforma invoice and send it to the customer upon purchase.
Proforma Invoice Template
Use for Excel, OpenOffice, and Google Sheets
This guide covers the essential components of a proforma invoice, several tips on how to create and use one, and free proforma invoice templates.
How To Create Proforma Invoice
Proforma isn’t used for account receivable or account payable, however, it is a legal document and you could be bound to the terms and conditions laid out in it.
Your proforma invoice is your offer to sell. Don’t undervalue yourself. There are three things you can do to make sure this type of invoice is created correctly:
- Calculate your export costs using a cost sheet
- Determine acceptable costs of the goods you’re selling
- Cover all issues important to buyers
This guide will cover the necessary sections and proper proforma invoice format.
The first part of your document is going to be the header. It’s very important you include the words “Proforma Invoice” here. You’ll also want to include your business logo and business name. This makes your invoice easy to recognize and find if it gets lost. This invoice form is usually printed on official company letterhead, so it frequently includes this information. Next to include is your contact information: mailing address, telephone/telex number, email address, website, and country of origin. It is also helpful to include the date the invoice was created, the date it was requested, and the date it expires.
Buyer’s Contact Information
You should also add your buyer’s name and their contact information: mailing address, phone number, company name, and company email address.
Invoice Number and Dates
Your invoice needs a number. This number is going to be referenced in your and your buyer’s accounting information. You can use any number system you want, starting anywhere you want, but it should be sequential.
Figure out what system you’re going to use to number the invoices and then develop a system to keep track of them. You should know who you sent an invoice to, when you sent it, and when payment is due.
This can all be tracked in a Microsoft Excel Spreadsheet, Microsoft Word Document, Google Doc, or in some other accounting software.
Reason for Export
Since these invoices are being used to export goods, you will need to explain why you need to export them. Mention if the items are for sale, sample, repair, return, or gift. If the export is temporary (i.e. it’s going to have to be exported back in the case of repairs), put “temporarily exported.”
At this point, you need to add the mode of transportation (air, car, train, etc), the total number of packages you’re sending, and the total gross weight of the shipment.
Itemized Breakdown of Charges
This part is where you need to break down the shipment and get into the nitty-gritty details. You need to be as specific as possible here. The majority of rejected proforma invoices are because what was provided either wasn’t important to the buyers or didn’t tell them what they needed to know.
The more specific you get, the less chance there is your buyer will choose another supplier. Here’s a sample of what you should include:
- Assign a line item to each good being provided
- Type a detailed description, which includes a description of what’s being sold
- Number of units included
- Price per unit of each individual item
- Total cost