Proforma invoice in word

Download the pro forma invoice template to establish a written commitment between two parties for the exchange of goods or services for a specified price. These are helpful when the seller wants to know that the payment is being made before services are completed and for both parties to know what goods are being exchanged to avoid later disagreements.

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How to Make in Adobe PDF and Microsoft Word

Step 1 – Download in Adobe PDF (.pdf) or Microsoft Word (.doc).

Step 2 – At the top, enter the date and number of the invoice. Then include your company’s name/your name, your address, and phone number.

Step 3 – Sent To – Include the recipient’s shipping address here, with name and phone number. To the right, enter the airway bill number and information if shipping with an airway bill.

Step 4 – Description of Goods – Here, describe each type of good in the shipment, its quantity, price per unit, associated shipping fees and taxes, and combine the figures in each row to enter totals in the right column. Add each figure in the right column to reach the total due.

Step 5 – Enter the type of currency you want to be paid in to the left, and indicate the transportation terms and reason for export at the bottom.

How to Make in Microsoft Excel

Step 1 – Download in Microsoft Excel (.xls).

Step 2 – Begin by entering your company’s name at the top, followed by its address and other contact information. Then enter the invoice number, date, expiration date, and the customer’s ID at the right.

Step 3 – Customer/Ship To – Here, write the customer’s name, company name, and contact information, and then enter the name and address for where the goods will be sent. Complete the shipping info to the right, including shipping date, number of packages, and so on.

Step 4 – Description Table – Describe each type of good being sent on a separate row. Include the part number and unit of measure (e.g., bundle, roll, etc.) to the left. Then enter the quantity and unit price to the right along with the tax for each to get the total for each row on the right. The figures in the right column will total to give you the subtotal. Include any taxes, shipping fees, and other charges to reach the grand total the customer owes.

Step 5 – Terms and Other Comments – Include any payment terms such as the form of payment you want the customer to use. Include the export and shipping port details below, and then certify the invoice’s information by signing and dating at the bottom.

In many businesses, especially in dealing with products and outputs, materials are vital components of production. An organization or a factory processing the creation of particular items must possess supplies to make its products. Not only will the company lose profit, but it will also be challenging to produce goods that satisfy the consumer population. It is troublesome, especially to companies that provide commodities that must be replenished in the market every day, like food. Factories and establishments that prepare consumables and other goods must have daily delivery schedules of sufficient quantities of stocks and supplies. A proforma invoice is a draft or anticipated invoice used to obtain payment from a committed buyer for goods or services before they are delivered. A proforma invoice contains a description of the items, the total amount due, and other transactional information.

For this, the company holds a pro forma invoice that assures a particular amount of materials for transport and delivery, upholding the prior purchase made by the organization. A proforma invoice helps to ensure supplies come in on their designated dates, especially materials arriving from overseas shipping. Proforma invoices are essential in productions and operations, and individuals must know what they are. Learn about proforma invoices in the article below with supporting information about their description, composition, and elements, with additional details through frequently asked questions.

What Is a Proforma Invoice?

Proforma is the Latin word translating to ‘as a matter of form’ or ‘for the sake of form’. A proforma invoice is a preliminary bill of sale for a shipment or delivery of goods or items in advance, sent to a buyer. Proforma invoices present a specific sales price to the customer. The content of the invoice requires only necessary information to allow the package to pass a general examination by the customs officers for the goods. Businesses and organizations utilize these forms to satisfy their internal purchase approval process, making it a necessary document for importing and exporting goods. The proforma invoice serves as a vital piece of documentation going with various kinds of purchase orders for international shipping from one country to another.

According to the data by the World Integrated Trade Solutions (WITS) developed by the World Bank, the overall imports and exports for the United States in 2018 amounted to approximately 4.2 billion US dollars, with exports amounting to 1.66 billion US dollars and imports amounting to 2.61 billion US dollars. Business is still active throughout the globe during 2018. However, as many businesses suffered during the pandemic, the import and export of goods and services declined.

Elements of a Proforma Invoice

Organizations ship out the agreed-upon deliverables with the proforma invoice or before sending the goods. The proforma invoice contains the exact cost details connected with the sale. However, it is not an official document of payment. There are no specific guidelines that dictate the actual representation or format requirements for a proforma invoice. However, certain elements must reflect on it for the customs’ general inspection. Here is a list of information that must be present in the proforma invoice.

Contact details of the buyer and seller: Every transaction involving goods or services must include information about buyer and seller. The invoice must include the full names, contact information, and the complete address of both parties.Date of issuance: The issuance date is the exact date when the buyer orders the good from a seller. It is necessary to include the issuance date on the invoice to know the number of days the goods travel from the buyer to the seller. It also supports tracking the exact date consumers orders the goods, especially if there is a need for recollection or replacement. Description of goods: Indicate a clear and accurate description of the items included in the package, with details such as product specifications, country of origin, weight, dimensions, and quantity of the items. Having this information in the invoice allows the consumer to calculate any additional costs regarding the weight and dimensions of the product.Price calculations: The price is the most significant portion of a proforma invoice. Based on the description of a proforma invoice mentioned above, the invoice must include an exact sales price from the moment of purchase. In calculating the cost of the goods, the price quotation appears with more than just the original value. Depending on the terms of the sale, a consideration of the shipping costs, both local and international, including insurances, taxes, or fees required by the receiving country, is added to the initial price. It is also possible that an expiration date is present on the invoice, especially for products with price changes.Terms of sale: The terms of sale identify the conditions, rights, and obligations between the seller and buyer. A clear definition of this information lessens the possibility of misunderstanding and disagreements between the seller and buyer. The terms of sale are essential, especially during cross-country transactions. It must also give information about international taxes, duties, and other insurances for payment matters.Payment terms: The proforma invoice must be complete with pertinent information about the terms of payment of the merchant, along with the remittance details. The invoice is a necessary document for the seller to open a letter of credit, arrange financing conditions, and apply for relevant licenses. It also specifies when and how the retailer claims the payment of the buyer.Delivery details: The estimated delivery date is essential to be as accurate and precise as possible to allow the consumer to receive the package or authorize someone on their behalf. Aside from the delivery date, the invoice contains the delivery address and when the goods are packed and shipped. Without the relevant information, possible conflicts may arise because of the export and import fees and will considerably impact the cost of the items. Export and import controls: The purpose of creating the proforma invoice is dependent on whether or not a buyer can do business with an international client. The United States export regulations identify particular organizations and individuals, countries with embargoes, and licenses. Ensure the checking of all necessary information and requirements before proceeding with a potential client.

How to Write a Proforma Invoice

A proforma invoice looks similar to a regular invoice document or a bill of sale. As stated above, it contains the description of the product, a listing of charges, and sales terms. The difference lies in the document stating that it is a proforma invoice. Here are helpful steps in creating a pro forma invoice for a transaction.

Step 1: Mark the Invoice Clearly

State that the document is a proforma invoice. The consumer must know that the invoice they received is only proforma to avoid confusion and misunderstandings. It must also indicate a unique identification number necessary in record-keeping and reference documentation. Note that the identification is different from an invoice number.

Step 2: Include Buyer and Seller Information

The document must show the accurate details of the seller, including the company or the individual’s name, address, and contact information. The customer’s name or company name and address, including a representative contact, ensures the invoice reaches the correct person. The details are necessary to guarantee that the parties are involved in a transaction. If there are conflicts or complications regarding the items, for example, missing or damaged goods, the buyer can quickly contact the merchant for clarification or return.

Step 3: Write an Accurate Description of the Goods and Their Prices

The description of each item does not need to be unbelievably lengthy. However, it must hold the relevant details enough for the customers to identify the item for payment. Some consumers receive various invoices daily, and some do not notice the objects included in the package. Instead of these buyers inquiring about the items, it is helpful for the merchant to state them clearly. Once an accurate description is available, include the number of items and the corresponding prices based on a price list.

Step 4: Indicate Relevant Dates in the Invoice

The proforma invoice must show the issuance date or the date when the buyer purchased the goods. It must also indicate the date the merchant provided or packed the goods for shipping. It must also show an estimated date of delivery for the buyer to know when the package arrives. The supply date is supplied right after the description of the goods, and the issuance date and delivery date at the upper right-hand portion of the proforma invoice.

Step 5: Calculate the Total Price of Items

After completing to pack the items in a package, the merchant computes the cost of individual goods with its number to total the amount owed by the buyer. If the buyer avails of a discount offered by the buyer, include it in the proforma invoice and subtract it from the total cost. Other applicable insurances, taxes, and duties must also reflect in the computation of the charges.

Step 6: Include the Terms of Sale and Payment

It is always relevant to include all relevant terms and conditions in the sale of a product. If there is a formal agreement between buyer and seller with the payment dates and provisions, indicate them in the proforma invoice. It is also necessary to note how the client intends to pay for the product. If the payment method is through a bank account, specify the details for the customer to deposit the sum into the corresponding bank. Accurate and precise payment terms help in ensuring a stable cash flow and lessen any problems. The term of sale is also necessary and must include cancellation and return clauses for the benefit of the consumer and merchant.

FAQs

When money is involved in transactions, it is necessary to receive a document that provides all relevant information relating to the product or service. In most cases, organizations always seek invoices and other related documents as proofs or deeds of sales. While proforma invoices are irrelevant or unnecessary to particular businesses, it holds significance, especially in international transactions, consignments, or business matters requiring more formal documentation before finalizing a sale.

In which case, the merchant must know a proforma invoice. There is always room for discovering new ideas and information, especially if it helps gain clients and boost brand recognition. In the words of Nicolaus Copernicus, “To know that we know what we know, and to know that we do not know what we do not know, that is true knowledge.” It’s best to realize shortcomings and work towards understanding them. Start with proforma invoices samples that are available for use and download in the article above.

Updated March 27, 2023

A proForma invoice is a preliminary record of sale that serves as a stand-in until transaction details are finalized. Like any other invoice, this one should contain an itemized list of items and costs. However, since this document is not necessarily in final form, shipping costs, taxes, and other details may be subject to change.

Businesses use ProForma invoices as written estimates that can help with bookkeeping and customs processing and can serve as the basis for hammering out a final agreement between buyer and seller – so invoices should always be prepared in good faith and delivered promptly.

What to Include

The ProForma invoice should be basically indistinguishable from a standard one, with the caveat that its figures are subject to change. It should include:

• The name, address, and phone number of both buyer and seller
• An itemized list of all items and their costs
• The estimated subtotal due, estimated taxes due, and estimated total due
• The payment due date and any penalties for late payment

How to Use a ProForma Invoice

1. Calculate Goods to be Sent

Review the order in detail and calculate the total preliminary costs.

2. Describe Each Preliminary Charge

Complete the invoice by filling out these preliminary quantities and costs. It may be wise to highlight particular elements that are most likely to change.

3. Submit Invoice

Submit the invoice when ready, and make sure to express that it is the ProForma, not the final version. Speak to the customer and ensure agreement on all terms.

4. Ship the Goods

Once the ProForma Invoice has been delivered and an agreement is achieved, you can send goods. Remember to record any changes in costs or quantities. Then, prepare the final invoice and deliver it promptly to the customer.

Benefits of sending a Proforma Invoice

• It provides the seller and buyer with a general idea of what the labor and products will cost.
• It doesn’t have to look perfect – it’s only a rough outline of what the buyer should expect.
• Fosters accountability and trust between both parties.

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Commercial Proforma Invoices

FedEx Proforma Invoice – Used by companies for shipping their products via the shipper FedEx. A form needs to be individually printed-out and inserted into each shipped package (cannot use 1 for multiple).

Download – PDF

UPS Commercial Invoice – If an individual or company will be shipping goods out of the US with UPS (United Parcel Service), they must complete this form to ensure the proper tariffs/taxes are charged on the goods.

Download – PDF | WORD

DHL Proforma Invoice – For use with DHL shipping only. Provides buyers with the total cost of an order in addition to shipping.

Download – PDF | WORD

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Additional Versions

Proforma Invoice (Version 2) – A one (1) page invoice that includes ample room for listing all products and contains a signature field for approval.

Download – PDF | WORD

Proforma Invoice (Version 3) – Includes fields for VAT and other international shipping fields.

Download – PDF | WORD

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How to Write in PDF and Word

Step 1 – Download

Download the Proforma Invoice in either PDF or WORD.

Step 2 – Company Contact Information

Start by entering the name of the company issuing the invoice in the upper-left corner. Then, enter the following regarding the company in the upper-right corner:

• Company Phone Number
• Email
• Website
• Address (Street, City, State, and ZIP Code)

Step 3 – Client Details

For the ‘Bill-to’ section, enter the name of the individual or company being billed, the invoice (or quote) number, their customer ID (if applicable), address, and the date that the invoice will be issued.

Step 4 – Products Sold

Next, in the first table, enter the products the client is being charged for. In the PDF version, the amounts will calculate automatically. In the Word version, the seller will need to calculate each amount field manually. Once the first table has completed, repeat the process for any labor services being charged.

Step 5 – Labor Cost

For the Word version, multiply the ‘subtotal’ field by the ‘sales tax’ field, and add the result to the ‘subtotal’ amount to find the invoice’s ‘total’ amount. Enter this value into the capitalized ‘TOTAL’ field. For the PDF version, to ensure the ‘Total’ calculates correctly, enter the ‘sales tax’ in decimal format.

Step 6 – Payment Info + Comments

At the bottom of the document, enter the number of days the client has to pay the invoice in full. Then, in the comments box, enter any notes or info the seller has for the buyer. This can include a thank-you to the buyer or an address for them to send the invoice payment. The Proforma Invoice is now complete.

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How to Write in Excel / Sheets

Step 1 – Download the Invoice

Start by downloading the Proforma Invoice in Microsoft Excel (.xlsx) or Google Sheets.

Step 2 – Company Contact Details

Begin by entering the name of the company directly below the main title. Then, enter the company’s contact information, of which includes the company’s phone number, website URL, email, and street address.

Step 3 – Client Information

Next, enter the contact information of the individual or company being billed, which includes the following fields:

• Invoice Number
• Date Issued
• Due Date
• Client’s Email
• Name
• Address (Street, City, State, and Country)
• Phone Number

Step 4 – Products & Labor Charges

In the ‘Products’ table, enter the number of items being sold, a short description of each product, and the cost of a single item. The ‘amount’ fields will automatically calculate. At the bottom of the table, enter the estimated shipping cost to ship the goods to the client. In the ‘Labor’ table, enter the number of hours applied to each service as well as the hourly rate for each service-type. As before, the field on the far-right will calculate on its own.

Step 5 – Tax, Totals, and Days Until Due

At the bottom of the ‘Labor’ table, enter the state’s sales tax (as a percent) in the ‘sales tax’ field. The ‘TOTAL’ field will now display the full invoice amount. To the left of the ‘TOTAL’ cell, enter how many days the client has to pay the invoice in full.

Step 6 – Final Comments

In the ‘Comments or Special Instructions’ box, enter any miscellaneous info for the client, such as payment instructions or amount corrections. The Proforma Invoice is now complete and can be printed or sent to the client digitally.

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