Example
A client's finance team asks for a proforma to open a purchase order for a $9,000 install.
Also called a pro forma, a preliminary invoice, or a quotation invoice.
What it means in practice
A proforma is not a demand for payment and is not entered into your accounts as revenue. It exists so a client can raise a purchase order, arrange finance, or clear customs before anything is delivered.
Label it clearly as proforma, give it its own reference rather than an invoice number, and issue the real invoice when the work is done.
Covered in full in the guide to quote, then invoice.
Where it shows up on the paperwork
It looks like an invoice and says proforma on it. It carries its own reference rather than an invoice number, and it is not entered as revenue.
What goes wrong
- Numbering it in the invoice series, which leaves a gap when the real invoice follows.
- Treating the money it asks for as paid revenue before the work happens.
- Sending one where a quote would do, which confuses a client who then thinks they owe money.
Common questions
Is a proforma invoice a real invoice?
No. It shows what the final invoice will contain so the client can raise a purchase order, arrange payment or clear customs. The real invoice follows when the work is done or the goods ship.
When should I send a proforma?
When a client's process needs an invoice-shaped document before you can be paid or before goods can move. For everyday trade work, a quote is the better document.