A pro forma invoice is a preliminary document a seller sends before delivering goods or services. It looks like a normal invoice but is not a demand for payment — it's a good-faith estimate of what the final invoice will say. Most common in international shipping, customs filings, letters of credit, and large B2B procurement workflows. This article explains when to use one, what it must contain, the differences vs commercial invoices, quotes and estimates, and how to convert a pro forma into a real invoice once the sale is finalised.
No. A pro forma invoice is not a demand for payment and does not create a financial obligation. It's a good-faith estimate of what the final commercial invoice will say.
No. Pro forma invoices are not booked as sales or accounts receivable. Only the commercial invoice that follows is recorded.
Show estimated tax so the buyer knows the full landed cost, but no tax is actually owed yet. Tax becomes payable when the commercial invoice is issued.
Yes — it's one of the most common uses. Customs officials use the pro forma to assess duty and clear goods at the border before the final commercial invoice is available.
Functionally similar — both are pre-sale, non-binding documents. The pro forma is structured exactly like a real invoice, which makes it the preferred document when a customs officer, bank, or buyer's procurement system needs to process something that looks like an invoice.
Typically 30 days, though you can set any period that makes sense for your business. State the validity period clearly on the document.
v68