Free Pro Forma Invoice Template: What to Include and How to Create One

You have a new international client. They want a document confirming the details of your proposed transaction before committing to the purchase — something they can use to arrange payment, apply for a letter of credit, obtain an import licence, or clear goods through customs. A standard quotation will not serve this purpose. What they need is a pro forma invoice.

Or perhaps you are on the other side: a buyer who has been sent a "pro forma invoice" by a supplier and is wondering what exactly it is, whether it represents a demand for payment, and how it differs from the commercial invoice you will receive when the goods ship.

This guide covers both scenarios — and everything in between. You will learn exactly what a pro forma invoice is, what it must contain, how it differs from other business documents, when to use one, and how to create a professional pro forma invoice in minutes using a free online generator.

What Is a Pro Forma Invoice?

A pro forma invoice (from the Latin pro forma — "as a matter of form") is a preliminary document issued by a seller to a buyer before a transaction is finalised or goods are dispatched. It outlines the details of a proposed sale: what is being sold, in what quantity, at what price, and on what terms.

Despite being called an "invoice," a pro forma invoice is not a demand for payment and does not create a legal payment obligation. It is a good-faith statement of intent — a detailed preview of what the final commercial invoice will contain, used by both parties to confirm the terms before the transaction proceeds.

Pro forma invoices are used across a wide range of commercial contexts, but they are especially common in:

• International trade — where buyers need a document to arrange payment (letters of credit, advance wire transfers), obtain import permits, or estimate customs duties before goods are shipped
• Customs declaration — many customs authorities require a pro forma invoice for goods that are shipped as samples, gifts, or in advance of a formal commercial arrangement
• Internal approvals — larger organisations often require an approved pro forma before a purchase order can be raised, giving finance and procurement teams visibility of the cost before commitment
• Advance payment requests — used to request a deposit or full upfront payment before production commences, particularly for custom-manufactured goods or large orders
• Exhibition and samples — goods sent to trade shows or as samples often require a pro forma invoice for customs purposes even when no sale has occurred

Pro Forma Invoice vs Commercial Invoice: Key Differences

This is the most important distinction to understand, and one that causes significant confusion in international trade.

The key principle: a pro forma invoice opens the commercial conversation; a commercial invoice closes it.

When goods are actually shipped and payment is formally requested, the pro forma transitions into a commercial invoice — which must reflect the actual quantities shipped, final pricing, and all the details required by customs authorities and the buyer's accounts payable team.

Pro Forma Invoice vs Quotation: What Is the Difference?

Both documents are issued before a transaction is finalised, which leads to confusion. The practical distinctions:

A quotation:

• Offers a price for goods or services
• May include general terms
• Is typically how a conversation about price begins
• Does not look like an invoice

A pro forma invoice:

• Is formatted like an invoice (with an invoice-style layout, line items, totals, and payment terms)
• Is typically issued once the buyer has provisionally agreed to purchase and needs a formal document to proceed internally or internationally
• Often includes customs-specific information (HS codes, country of origin, incoterms) that a quotation does not
• May be used directly by the buyer to arrange a letter of credit or bank transfer

In practice: you send a quotation first. When the buyer is ready to proceed and needs a formal document — for their finance department, their bank, or a customs authority — you issue a pro forma invoice.

Who Uses Pro Forma Invoices?

Pro forma invoices are relevant across a wide range of business types and situations:

• Exporters shipping goods internationally, where the importer needs documentation before the shipment arrives
• Manufacturers producing custom or made-to-order goods who require advance payment or deposit before starting production
• Importers who need to present a pro forma to their bank to arrange a letter of credit or to their customs broker for advance classification
• Businesses selling to corporate buyers who need internal purchase approval before committing to a purchase order
• E-commerce businesses handling pre-orders or out-of-stock items where payment is collected ahead of fulfilment
• Service businesses requesting a deposit before commencing a project, using a pro forma to formalise the payment request before the final invoice
• Exhibition and trade show participants sending product samples internationally for display purposes

If your business operates across borders, or deals with corporate procurement processes, pro forma invoices are a standard part of your document workflow.

What a Pro Forma Invoice Must Include

A professional pro forma invoice contains all the information a buyer needs to confirm the transaction, arrange payment, and (for international shipments) prepare import documentation.

1. The Words "Pro Forma Invoice"

This sounds obvious, but the document must be clearly labelled. "Pro Forma Invoice," "Proforma Invoice," or "PI" are all acceptable. Labelling it incorrectly — or not at all — can cause it to be treated as a commercial invoice by customs authorities, creating compliance and accounting problems for both parties.

2. Your Business (Seller) Details

• Full legal business name
• Registered business address
• Contact details (email, phone)
• Business registration number or tax identification number
• VAT/GST registration number if applicable

3. Buyer Details

• Full legal name or company name
• Registered address and delivery address (if different)
• Contact person name and title

4. Pro Forma Invoice Number and Date

• A unique reference number (e.g., PF-2026-0042)
• Date of issue

5. Validity Period

Pro forma invoices should include a date until which the pricing and terms are valid. This is important both commercially (your costs may change) and in trade finance contexts (letters of credit and advance payments need a validity window to work against).

6. Line Items — Detailed Product or Service Description

For each item:

• Description — precise enough that customs can classify it and the buyer can match it against their purchase request. For goods: product name, model number, specification, size, variant
• HS Code (Harmonised System Code) — the internationally standardised tariff code that identifies the product category for customs purposes. Required for cross-border shipments. If you do not know your product's HS code, your freight forwarder or customs broker can advise
• Quantity — number of units, weight, or volume
• Unit of measure — pieces, kilograms, metres, litres
• Unit price — in the agreed currency
• Line total — Quantity × Unit Price

7. Pricing Summary

• Subtotal — sum of all line item totals
• Freight / shipping charges — if included in the price, stated separately
• Insurance — if applicable
• Taxes or duties — where applicable and known
• Total — the full amount

8. Currency

State the currency explicitly. In international trade, currency confusion is a real and costly problem. Always specify whether the amounts are in USD, EUR, GBP, EUR, AED, NGN, or whichever currency applies.

9. Country of Origin

The country where the goods were manufactured or substantially transformed. Required for customs and potentially for preferential tariff treatment under trade agreements. "Made in" the exporting country is not the same as country of origin if the goods were manufactured elsewhere.

10. Incoterms (International Commercial Terms)

Incoterms are a standardised set of international trade terms published by the International Chamber of Commerce (ICC). They define exactly who is responsible for freight, insurance, and customs costs between seller and buyer — and at what point risk transfers.

Common Incoterms you should know:

• EXW (Ex Works) — buyer collects from seller's premises; all costs from that point are the buyer's responsibility
• FOB (Free On Board) — seller delivers goods to the named port; buyer pays freight and insurance from there
• CIF (Cost, Insurance and Freight) — seller pays freight and insurance to destination port
• DDP (Delivered Duty Paid) — seller delivers to the buyer's door, covering all costs including import duties

Always specify the Incoterm and the named location (e.g., "FOB Lagos" or "CIF Rotterdam").

11. Payment Terms

• Required payment method (bank transfer, letter of credit, etc.)
• Deposit amount and when due
• Balance payment timing
• Bank details if advance payment is required

12. Shipping Details

• Estimated shipment date
• Port of loading and port of discharge
• Mode of transport (sea freight, air freight, road, courier)
• Estimated delivery date or lead time

13. Pro Forma Declaration Statement

Many pro forma invoices include a statement such as: "This is a pro forma invoice only. It does not constitute a tax invoice or a demand for payment. It is issued for the purposes of [advance payment/import permit/customs clearance]."

This protects both parties and prevents the document from being misused or misclassified.

Free Pro Forma Invoice Template Options

Downloaded Word or PDF Templates

Available from template sites, these let you fill in a pre-formatted document.

Limitations: No automatic calculations — totals must be typed manually, introducing arithmetic risk. Cannot easily accommodate complex line items. Branding requires design effort. No sequential numbering. PDFs require paid software to edit properly. Once the template is saved and sent, there is no version control.

Spreadsheet Templates

Some businesses use Excel or Google Sheets because of the auto-calculation capability.

Limitations: Spreadsheets look like internal working files, not professional commercial documents. Exporting to PDF for sending is cumbersome. Formatting for international document standards (line items, totals, currency, incoterms) requires significant setup.

ERP and Accounting Software

Enterprise software includes pro forma functionality, but mid-market and enterprise ERP systems (SAP, Oracle, Microsoft Dynamics) have significant cost and implementation overhead. Small business accounting packages (Xero, QuickBooks) may have limited pro forma functionality depending on the plan.

Free Online Pro Forma Invoice Generator

Our free pro forma invoice generator is purpose-built for this document type:

• All the right fields — including pro forma-specific fields like country of origin, incoterms, and HS code support that generic invoice tools lack
• Automatic calculations — subtotals, shipping charges, tax, and totals calculated in real time
• Multiple currency support — issue pro formas in any currency for international buyers
• Logo upload and brand colour — your documents look professional, not generic
• Clean PDF in one click — ready to email, attach to a trade finance application, or share with a customs broker
• Pro forma declaration included — the PDF clearly states the document is a pro forma, not a commercial invoice
• No account, no subscription, no watermark — open, fill in, download
• Data stays in your browser — nothing is stored on any server; your commercial data remains completely private

How to Create a Pro Forma Invoice Step by Step

Here is how to produce a professional pro forma invoice using the free pro forma invoice generator:

Step 1: Set Up Your Business Profile

Enter your company name, address, contact details, and upload your logo. Set your default currency. Your details are saved locally and pre-populated on every subsequent document.

Step 2: Enter Buyer Details

Complete the "Bill To" / "Ship To" section with your customer's full legal name, address, and contact. For international shipments, include the buyer's country — some jurisdictions require it on customs documentation.

Step 3: Set Reference, Dates, and Validity

• The pro forma number is auto-assigned sequentially
• Set the issue date
• Set the validity date — the date after which the prices and terms are subject to change. 30 days is common for standard goods; 14 days if your costs are volatile

Step 4: Add Line Items

For each product:

• Enter the description — be precise and use the language your buyer and their customs broker will recognise
• Enter the HS code if you know it
• Enter the country of origin
• Enter quantity, unit of measure, and unit price
• Totals calculate automatically

Step 5: Add Shipping and Trade Details

• Select the applicable Incoterm and specify the named location
• Enter the port of loading and port of discharge
• Add estimated shipment and delivery dates
• Include freight and insurance charges as separate line items if applicable under your Incoterm

Step 6: Add Payment Terms and Bank Details

Specify how you want to be paid: bank transfer, letter of credit, etc. If requesting advance payment, include your bank account details in the payment section so the buyer has everything they need to initiate the transfer.

Step 7: Add the Pro Forma Statement

Use the notes section to include a brief pro forma declaration. The generator includes this as standard in the footer of the PDF.

Step 8: Download and Send

Click Download PDF — your professionally formatted pro forma invoice downloads instantly. Send to your buyer, their freight forwarder, or their bank as appropriate.

When the goods ship and payment is requested, use the invoice generator to produce the matching commercial invoice, referencing the pro forma number for continuity.

Common Pro Forma Invoice Mistakes to Avoid

Using the Wrong Incoterm

The most costly mistakes in international trade often originate from Incoterm misunderstandings. "FOB" in a contract means the seller's cost obligation ends when goods are loaded at the named port. If the seller misunderstands this as delivery to the buyer's door, they will quote a price that does not cover the freight they will ultimately need to pay.

Always clarify Incoterms explicitly with your freight forwarder before confirming pricing, and state the complete term and location on the pro forma (e.g., "FOB Port of Felixstowe" not just "FOB").

Omitting HS Codes

For cross-border shipments, missing HS codes delay customs clearance and can trigger examination of the shipment. Your customs broker or freight forwarder can help you identify the correct codes for your product category. Once you know them, add them to your standard product descriptions.

Incorrect Country of Origin

The country of origin is where the goods were manufactured or substantially transformed — not where they are being shipped from. If you are a trading company buying from a manufacturer in one country and shipping to a buyer in another, the country of origin is the manufacturer's country, not yours.

Not Including a Validity Date

A pro forma without a validity date can be used as the basis for a letter of credit months after your costs have changed. Always include a validity date and ensure your buyers understand that pricing is only guaranteed within the stated period.

Using a Pro Forma as a Tax Invoice

In most jurisdictions, a pro forma invoice is explicitly not a tax invoice and cannot be used as the basis for VAT or GST reclaim by the buyer. Issue a proper commercial invoice once the transaction is complete and goods are delivered.

Amounts in the Wrong Currency

For international pro formas, always specify the currency. If the pro forma uses USD and your buyer reads it as EUR, the misunderstanding can be significant. In any correspondence about the pro forma, reconfirm the currency.

Pro Forma Invoices and Trade Finance

Understanding how pro forma invoices interact with trade finance instruments is important for businesses dealing in significant cross-border volumes.

Letters of Credit (LC)

A letter of credit is a guarantee issued by the buyer's bank to pay the seller, provided documents presented by the seller match exactly the terms specified in the LC. The process typically begins with the seller issuing a pro forma invoice, which the buyer uses to instruct their bank on the LC terms. The LC's specified document requirements, amount, currency, validity, and conditions must all match what was agreed in the pro forma — any discrepancy between the LC and the documents presented at shipment can result in rejection and non-payment.

If you are new to LC transactions, work closely with your bank's trade finance team before issuing the pro forma.

Advance Payment (Telegraphic Transfer)

For lower-risk buyers or smaller transactions, a pro forma invoice is issued requesting full or partial advance payment by bank transfer before production commences or goods ship. The pro forma serves as the formal payment instruction to the buyer — it should include your full banking details, the amount, currency, and a payment reference they should include with the transfer.

Import Permits and Licences

Some goods require the buyer to obtain an import licence or permit before the goods can be shipped. The buyer typically submits the pro forma invoice to their trade authority as evidence of the proposed transaction. The accuracy of the pro forma — particularly product descriptions, HS codes, value, and origin — is therefore important for their licence application.

Industry-Specific Uses

Manufacturing and Custom Production

Manufacturers use pro forma invoices to confirm order details and request deposits before committing raw materials and production capacity. The pro forma specifies the product specification, agreed quantities, price, deposit amount, and estimated production and delivery schedule.

Commodity Trading

In commodity markets (agricultural products, metals, energy), pro formas are used to lock in prices and quantities before the shipment is assembled. They specify the commodity grade, quantity, price per unit, certificate requirements, and loading port.

Retail Importing

Retailers sourcing goods from overseas factories use pro formas to get final pricing confirmation, arrange finance, and prepare to submit import documentation to their customs broker ahead of the shipment.

Professional Services — International Projects

Service businesses working on international projects sometimes use pro formas to request advance payment from foreign clients, structured like an invoice but clearly labelled as preliminary until the service is delivered and the final invoice is issued.

Frequently Asked Questions

Is a pro forma invoice legally binding?

A standard pro forma invoice is not legally binding as a payment demand — it explicitly does not create a payment obligation. However, if a buyer has paid against a pro forma (advance payment or deposit), that payment creates an obligation on the seller to supply the goods or services as described. If the buyer uses the pro forma as the basis for a letter of credit, the terms of the pro forma effectively become the terms of the LC, which is a binding banking instrument. So while the document itself is preliminary, the actions taken on its basis can create binding obligations.

What is the difference between a pro forma invoice and a commercial invoice?

A pro forma invoice is issued before the transaction is complete — it is a confirmed advance notice of what the final invoice will contain. A commercial invoice is the final, binding document issued after goods are shipped or services are delivered. The commercial invoice creates a legal payment obligation, is used for customs clearance of commercial goods, and is recorded in the accounts of both parties. A pro forma is not a tax invoice and cannot be used for VAT or GST reclaim in most jurisdictions.

Can I use a pro forma invoice for customs clearance?

A pro forma invoice can be used for customs declaration in specific circumstances — particularly for goods that are sent as samples, gifts, not-for-sale items, or for temporary importation. For commercial shipments (goods sold for resale or business use), customs authorities typically require a commercial invoice with the final confirmed quantities, value, and all required trade documentation.

Does a pro forma invoice need to include VAT or GST?

For international shipments, VAT/GST treatment depends on the specific transaction and jurisdictions involved. For export transactions, goods are typically zero-rated or exempt in the exporting country — but the destination country's import duties and taxes will apply on arrival. Your pro forma should note whether prices include or exclude tax, and state clearly that the final tax position will be reflected on the commercial invoice. Consult your accountant or customs adviser for jurisdiction-specific guidance.

How long is a pro forma invoice valid?

Common validity periods are 14 to 30 days for goods with stable pricing, and 7 to 14 days where material costs, exchange rates, or freight costs are volatile. For commodities and products with significant price volatility, some pro formas are valid for as little as 24 to 72 hours. Always state the validity date explicitly and communicate proactively with your buyer if you need to extend it.

Can a pro forma invoice serve as a receipt?

No. A pro forma invoice documents what is proposed to be sold — it is not a record of what has been sold and paid for. A receipt is issued after payment is received. If a customer pays against your pro forma and needs a receipt, issue a payment receipt or send the final commercial invoice once fulfilment is complete.

What is a pro forma invoice in accounting?

In accounting, a pro forma invoice is not recorded as revenue (for the seller) or as a liability (for the buyer) because it does not represent a completed transaction. Any advance payment received against a pro forma is recorded as deferred revenue or a customer deposit until the goods or services are delivered and the final invoice is issued. Your accountant or bookkeeper should advise on the correct treatment in your jurisdiction.

From Pro Forma to Commercial Invoice — Complete the Journey

The pro forma invoice is the first formal step in a commercial transaction. It confirms what is being sold, at what price, and on what terms — before any goods move or any payment is made. Getting it right prevents misunderstandings, protects your pricing, and gives your buyer everything they need to proceed.

Our free pro forma invoice generator handles all the complexity — including incoterms, HS codes, multi-currency support, and a clear pro forma declaration — so your document is professional, complete, and internationally appropriate from the very first use.

Create your pro forma invoice now →

When your goods are ready to ship, move to the invoice generator to issue the corresponding commercial invoice. And if you need to confirm pricing with your customer before reaching the pro forma stage, start with the quotation generator to send a professional quote first.

For pricing your products to maintain healthy margins, the Profit Margin Calculator helps you verify that your quoted prices are building the profit your business needs — accounting for production costs, freight, and all other overheads that international transactions involve.