What is a Proforma Invoice?
A Proforma Invoice is essentially a preliminary bill of sale sent to a buyer in advance of a shipment or delivery of goods. It acts as an estimate or a "good faith" agreement that outlines the exact goods, quantities, and prices being provided. Unlike a standard tax invoice, a proforma invoice does not demand immediate payment and is not recorded as an accounts receivable.
International Trade
Often required by customs to calculate duties and taxes before the goods officially cross the border into a new country.
Advance Payments
Used when a buyer requires internal approval to issue funds before the actual finalized tax invoice can be generated.
How to Generate One Using BillBano
You do not need complicated accounting software to issue a proforma invoice. BillBano's flexible generator makes it incredibly easy:
- Rename the Document: Open the tool and tap the large "INVOICE" header. Edit the text to say "PROFORMA INVOICE" so the legal distinction is visibly clear.
- Add Accurate Estimates: Input the estimated quantities, freight weights, or hours you intend to bill for.
- Terms & Conditions: Use the dedicated footnotes section to clarify that prices are valid for a specific timeframe (e.g., "Valid for 30 days").
- Export securely: Because the tool works locally in your browser, your proprietary trade secrets and pricing data remain entirely secure.
Frequently Asked Questions
Is a Proforma Invoice a legally binding document?
Generally, no. It is considered an estimate or an intent to sell. A finalized Tax Invoice or Commercial Invoice replaces the proforma once the transaction occurs.
Can I add international currencies?
Yes. If you are using this generator for import/export purposes, you can change the currency settings to reflect USD, Euros, or whichever currency you are dealing in.