Invoice types
Proforma invoice
A proforma invoice is a preliminary, good-faith estimate of costs a seller sends before goods or services are delivered, so the buyer can review and commit before a final invoice is issued.
What a proforma invoice is
A proforma invoice ("for the sake of form") is a quote-like document that outlines the expected cost of a sale before it is finalized. It looks like an invoice and includes prices, quantities, and terms, but it is not a demand for payment and is not recorded as a sale in your accounts.
Buyers use proforma invoices to approve a purchase internally, arrange financing, or — in international trade — to declare the value of a shipment to customs before goods ship.
Proforma invoice vs. commercial invoice
A proforma invoice is issued before the transaction is confirmed and is non-binding; it can still change. A commercial (final) invoice is issued once the sale is agreed and is a legally binding request for payment that you record in your books.
In practice, the proforma sets expectations and the commercial invoice closes the deal. Many sellers reuse the proforma’s line items to generate the final invoice once the buyer says yes.
When to use one
Send a proforma invoice when a client needs an itemized cost to get approval or budget sign-off, when you require a deposit before starting, or when exporting goods that must clear customs. It removes surprises by confirming scope and price up front.
Example: An exporter sends a proforma invoice listing 100 units at $12 each, plus $200 shipping, so the overseas buyer can open a letter of credit. Once paid, the exporter ships and issues a matching commercial invoice.
FAQs
Frequently asked questions
Is a proforma invoice legally binding?
No. A proforma invoice is a good-faith estimate and is not a binding demand for payment. The final commercial invoice is the binding document.
Can you get paid from a proforma invoice?
It is not meant as a payment request, but buyers often use it to arrange a deposit or financing. You should still issue a final invoice for the actual sale.
Related terms
Commercial invoice
A commercial invoice is a legally binding document used in international trade that declares the contents, value, and parties of a shipment for customs clearance and payment.
Invoice
An invoice is a document a seller sends to a buyer that itemizes goods or services provided and requests payment by a stated due date.
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made — for example "Net 30" or "Due on receipt."
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
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