Proforma Invoice Template Word & Excel

What is the Proforma Invoice Template?

A proforma invoice template is an initial bill of sale sent to buyers before a transaction is completed. It details the goods or services to be delivered, their prices, shipping information, and the expected delivery date. Acting as a preliminary agreement ensures that the buyer knows exactly what to expect, which is crucial when advance payments are involved. Proforma invoices are particularly useful when advance payments are required for manufacturing goods or services.

Importance of Proforma Invoice Template

• Clarity of Transaction Details: Enhances transparency by showing customers exactly what to expect, aiding their decision-making and financial planning.
• Efficiency in Sales Process: Accelerates approval and payment processes, as all terms are presented upfront, reducing the risk of disputes and misunderstandings.

What Does Proforma Invoice Template Contain? 

A proforma invoice template outlines:

1. Document Title: "Proforma Invoice"
2. Buyer’s Details: Company name, billing, and shipping addresses
3. Seller’s Details: Company name and address
4. Payment Terms
5. Invoice Creation and Expiration Dates
6. Detailed Descriptions, Prices, and Quantities of Goods or Services
7. Applicable Discounts and Taxes
8. Total Amount Due

How to Use Proforma Invoice Template

1. Add Company and Customer Information:

• Fill in Your Company Details: Enter your company name, slogan, address, and contact information in the designated spaces at the top of the invoice.
• Customer Information: Input the customer’s name, company details, and contact information under the "Customer" section to specify who the invoice is being issued to.

2. Enter Shipping Information:

• Ship To: If the shipping address differs from the billing address, provide the details of where the goods or services should be sent.
• Delivery Details: Enter the estimated date, gross and cubic weight, and the total number of packages.

3. List Product or Service Details:

• Itemized List: List each item being sold, including unit of measure, description, quantity, unit price, and applicable taxes.
• Totals Calculation: The template will automatically calculate subtotals and total amounts based on the quantities and prices you input.

4. Add any Additional Financial Information:

• Taxes and Additional Costs: Mark any taxes and additional costs such as freight, insurance, and other fees to provide a complete financial picture.
• Terms of Sale and Other Comments: Specify any terms of sale, and payment terms like Letters of Credit or Open Account details, which clarify the payment expectations and conditions.
• Certification and Authorization: This section is for the authorized signature to certify the accuracy of the information provided. Sign and include your typed name and title along with the date.

5. Review and Send:

• Final Review: Double-check all the details for accuracy. Check calculations, terms, and spelling of all entries.
• Send the Invoice: Once reviewed and signed, send the invoice to your customer either electronically or in printed form based on your usual process or the customer's preference.

6. Follow-Up:

• Payment Tracking: Keep track of the invoice and follow up with the customer to ensure timely payment per the specified terms.
• Record Keeping: Retain a copy of the filled-out invoice for your records, helping in financial tracking and future references.