How to make a proforma invoice
- Add seller, buyer and consignee. The consignee is whoever receives the goods, if not the buyer.
- Describe the goods. Customs needs clear descriptions, quantities and unit values. Add HS codes and country of origin in the description.
- Add terms of sale. Put the Incoterm (EXW, FOB, CIF, DAP...) in the Incoterms field and shipping cost below the subtotal.
- Set a validity date. Prices and availability are held until this date.
- Send the PDF. Issue the final commercial invoice once the goods are shipped.
When to use a proforma invoice
- Prepayment
- The buyer pays before you ship or start work.
- Customs and import licences
- Many customs authorities need the declared value before the goods arrive.
- Letters of credit and financing
- Banks often ask for a proforma before releasing funds.
Frequently asked questions
Is a proforma invoice a real invoice?
No. It is a good-faith estimate of the final invoice. It is not recorded as a sale and you cannot reclaim VAT on it.
Do I still need a commercial invoice?
Yes. Issue a commercial (final) invoice when the goods ship or the sale completes.
What is an Incoterm?
A standard three-letter code that sets who pays for transport, insurance and duties. FOB and CIF are common for sea freight; DAP and DDP for door delivery.