What Is A Proforma Invoice, And When Do You Need One? (2026)

Definition and Purpose of a Proforma Invoice

If you’ve ever had to generate an invoice template, you may have found that there are more types of invoices than many people realize. A proforma invoice is one of them. “Pro forma” is a Latin phrase that roughly translates to “made or done as a formality.”

A proforma invoice (or pro forma invoice) is sent to a buyer before goods or services are provided. It’s also called a preliminary invoice. Many other types of invoices are provided after a client has received the goods or services they ordered.

Why and When Sellers Issue One

A proforma invoice is effectively a quote in invoice format. Although it outlines the details of a future transaction, it generally isn’t legally binding. A business may issue a proforma invoice for a number of different reasons:

• To ensure the buyer and seller are on the same page about payment
• To allow the buyer to apply for necessary financing
• To speed up the shipment’s passage through international customs
• To facilitate purchase approval between departments of the same company

Companies will also sometimes send proforma invoices when they cannot yet send a commercial invoice. If some transaction details aren’t available, a proforma invoice can at least communicate some terms of the sale to the buyer.

Information to Include on the Document

Generally, a proforma invoice should include at least the following:

• The invoice number and issue date
• A description of the goods or services to be purchased
• The purchase price
• Shipping costs and any related expenses
• The shipping timeline and destination
• Payment terms

There is no standardized proforma invoice format, so you can use a template or create one from scratch.

How It Differs From a Commercial Invoice

Unlike a commercial invoice, a proforma invoice isn’t a formal request for payment. Instead, it clarifies the details of a future transaction. Notably, although a commercial invoice establishes the recipient’s obligation to pay, a proforma invoice isn’t an obligation itself.

Proforma Invoice vs. Purchase Order

A purchase order is effectively a reverse proforma invoice. When a buyer wants to order goods or services from a business, they may send a purchase order.

Most buyers are already familiar with a business’s terms of sale before they send a purchase order. However, just like with a proforma invoice, either party can make changes to a purchase order before it’s finalized.

Making Proforma Invoices Simple

Under the right circumstances, a proforma invoice can increase transparency and build trust between buyers and sellers. If you want to create an invoice or learn more about whether a proforma invoice is right for your company, take a look at ConsumerShield’s collection of legal document templates and guides.