• What the US Government Says It's For
  • What to Put on a Proforma Invoice

A binder of printed invoices with a rubber stamp on it

A proforma invoice is a quote laid out like an invoice. A seller sends it before the sale is final, so the buyer can see exactly what they'd be paying for: the goods or services, prices, terms of sale, payment terms and how long the offer stands. Buyers use it to approve a purchase, pay a deposit, or, in international trade, arrange an import license or a letter of credit. It isn't the final bill. Once the goods ship or the work is done, the seller issues the actual invoice for what was delivered.

Billed publishes this page.

What the US Government Says It's For

The International Trade Administration's pro forma invoice page (opened October 30, 2026) describes it this way: "A pro forma invoice is a quote in an invoice format that may be required by the buyer to apply for an import license, contract for pre-shipment inspection, open a letter of credit or arrange for transfer of hard currency."

It adds that pro forma invoices "contain much of the same information as the formal quotation, and in many cases can be used in place of one," and that "changes should not be made without the buyer's consent."

For a letter of credit, the ITA's letter of credit page explains that it's "a contractual commitment by the foreign buyer's bank to pay once the exporter ships the goods and presents the required documentation to the exporter's bank as proof."

What to Put on a Proforma Invoice

The ITA lists these points for a pro forma invoice:

  • "Seller's name and address"
  • "Buyer's name and address"
  • "Buyer's reference"
  • "Items quoted"
  • "Prices of items: per unit and extended totals"
  • "Weights and dimensions of quoted products"
  • "Discounts, if applicable"
  • "Terms of sale or Incoterm used (include delivery point)"
  • "Terms of payment"
  • "Estimated shipping date"
  • "Validity date"

Label the document clearly as a proforma invoice, and give it its own reference so the buyer doesn't mistake it for a bill to pay or file. For a domestic sale with no shipping, the weights, dimensions and Incoterm lines can be left out.

Proforma Invoice vs. Commercial Invoice

  • A proforma invoice comes before the sale or shipment. It's an offer, with estimated figures.
  • A commercial invoice describes the goods actually shipped and is the document customs works from.

For US import rules, including when an importer can file a pro forma (substitute) invoice at entry, see what is a commercial invoice, which quotes the federal regulations. For a buyer's own order document, see invoice vs. purchase order.

Deposits Against a Proforma Invoice

When a buyer pays a deposit on a proforma invoice, the seller hasn't delivered anything yet. OpenStax Principles of Accounting, Volume 1 (chapter 4 key terms) defines unearned revenue as an "advance payment for a product or service that has yet to be provided by the company; the transaction is a liability until the product or service is provided."

Its chapter 3 key terms give the revenue recognition principle: a company "must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided".

So the proforma invoice itself isn't recorded as a sale. The sale is recorded when the goods or services are provided, and the actual invoice bills for what was delivered. Ask your accountant how to record deposits in your books.

Worked Example: A Proforma Invoice, Then the Final Invoice (sample figures)

The business, buyer, prices and dates here are a sample, invented for this example.

A small US furniture maker sends proforma invoice PF-0118 to an overseas buyer on Monday, May 4, 2026, valid for 30 days:

  • 40 chairs × $185.00 = $7,400.00
  • 10 tables × $640.00 = $6,400.00
  • Export packing: $300.00
  • Proforma total: $7,400.00 + $6,400.00 + $300.00 = $14,100.00
  • Payment terms: 30% deposit with the order, balance before shipment
  • Deposit: $14,100.00 × 30% = $4,230.00
  • Valid until: May 4 + 30 days = Wednesday, June 3, 2026

The buyer accepts on May 20, cuts the order to 36 chairs and pays the $4,230.00 deposit. The furniture maker records the deposit as unearned revenue, not as a sale.

When the goods are ready, the furniture maker issues the actual invoice for what's shipping:

  • 36 chairs × $185.00 = $6,660.00
  • 10 tables × $640.00 = $6,400.00
  • Export packing: $300.00
  • Invoice total: $6,660.00 + $6,400.00 + $300.00 = $13,360.00
  • Less the deposit already paid: $13,360.00 − $4,230.00 = $9,130.00 balance due

The proforma said $14,100.00. The invoice says $13,360.00, because it bills what was actually delivered.

Where Billed Fits

Billed's proforma invoice template page lists, among the template's features, "Pre-sale quotation format with estimated costs and terms", "Shipping method, weight, and Incoterms specification" and "Validity period and acceptance deadline display". It says you can "Download in Word, Excel, PDF, or Google Sheets."

Billed's estimating software page describes "converting approved estimates into invoices with just a few clicks." Its invoice software page says: "Invoice customers in multiple currencies, choosing a different currency for each invoice or customer."

When This Guide Isn't for You

If you're shipping across borders, customs, duty and documentation rules depend on the countries involved; check with your freight forwarder or customs broker. If you need to know whether a proforma invoice binds you to its terms, ask a lawyer. To make a proforma in a word processor, see how to make an invoice with Word.

Related Guides

Frequently Asked Questions

Is a proforma invoice a real invoice?

No. It's a quote in an invoice format, sent before the sale is final. The actual invoice is issued once the goods or services are delivered, for what was delivered.

What is a proforma invoice used for?

To show the buyer the full terms of a sale before it's final, so they can approve it, pay a deposit, or, in international trade, apply for an import license or open a letter of credit.

What is the difference between a proforma invoice and a commercial invoice?

A proforma invoice is an offer sent before shipment, with estimated figures. A commercial invoice describes the goods actually shipped and is the document customs works from.

Do I record a proforma invoice as a sale?

No. A deposit paid against a proforma invoice is unearned revenue until the goods or services are provided, and the sale is recorded then. In the sample on this page, the $4,230.00 deposit is a liability until the furniture is provided to the buyer.

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