Proforma Invoice Template - Free Online

DESCRIPTION	QTY	UNIT	PRICE	AMOUNT
Stainless Steel Cookware Set	500	SET	45.00	22,500.00
Non-stick Frying Pan 28cm	1000	PCS	12.50	12,500.00
Kitchen Utensil Set (5pc)	800	SET	8.75	7,000.00

DESCRIPTION

QTY

UNIT

PRICE

AMOUNT

Stainless Steel Cookware Set

500

SET

45.00

22,500.00

Non-stick Frying Pan 28cm

1000

PCS

12.50

12,500.00

Kitchen Utensil Set (5pc)

800

SET

8.75

7,000.00

What is a Proforma Invoice used for?

A proforma invoice is a preliminary bill of sale sent to buyers before a shipment is delivered. Unlike a commercial invoice, which is issued after goods are shipped and serves as a final bill, a proforma invoice acts as a "good faith" estimate that helps both parties agree on transaction details before committing to the sale.

In international trade, proforma invoices serve critical functions beyond simple quotation. Importers often need them to apply for import licenses, arrange letters of credit with their banks, or declare anticipated shipment values to customs authorities. The document provides all the essential details a buyer needs to make purchasing decisions and prepare for the incoming shipment.

While a proforma invoice is not legally binding and does not require payment, it establishes the seller's commitment to provide goods at the specified terms. If the buyer accepts the proforma, it typically leads to a purchase order, followed by a commercial invoice once goods are ready for shipment. This makes the proforma invoice an essential first step in the international trade documentation chain.

Pre-shipment quotation for buyer approval and budget planning

Application for import licenses and permits from customs authorities

Securing letters of credit (L/C) or bank financing for the transaction

Customs declaration to estimate duties and taxes before shipment

Negotiating trade terms, quantities, and pricing before commitment

Internal approval processes within the buyer's organization

Documentation for foreign exchange arrangements

How to create a Proforma Invoice

Start a new document

Open ovrseas and create a new export document. Select Proforma Invoice from the available document types.

Enter seller and buyer details

Add the complete legal names and addresses for both the exporter (seller) and buyer, including contact information and any relevant tax or registration numbers.

Add product information

Enter detailed product descriptions, quantities, unit prices, and total amounts for each item. Include any relevant specifications the buyer needs.

Specify terms and validity

Select the appropriate Incoterms (e.g., FOB, CIF), payment terms, currency, and set an expiration date for the quote validity period.

Review and generate

Review all information for accuracy, add your signature if needed, and generate your professional PDF ready to send to your buyer.

Create in ovrseas

Your questions, answered.

A proforma invoice is a preliminary quotation sent before a sale is finalized - it acts as an estimate and is not legally binding. A commercial invoice is the official, legally binding bill of sale issued after goods are shipped and is required for customs clearance. While both contain similar information (seller, buyer, products, prices), the commercial invoice reflects actual shipped quantities and final values, whereas the proforma may change before the transaction is complete.

No, a proforma invoice is not legally binding. It is a quotation or estimate that indicates the seller's intention to provide goods at specified terms. Neither party is obligated to complete the transaction based on a proforma invoice alone. However, once the buyer accepts the terms and issues a purchase order, and the seller ships the goods with a commercial invoice, those documents become legally binding.

A proforma invoice should include: seller and buyer details with full contact information, a unique invoice number and date, detailed product descriptions, quantities and unit prices, total amounts, currency, Incoterms (delivery terms), payment terms, estimated shipping details, and a validity period for the quote. Some buyers may also require HS codes, country of origin, and estimated weights or dimensions.

The validity period depends on market conditions and your business practices. Common validity periods range from 7 to 30 days for stable products, while volatile commodities may have shorter periods of 24-72 hours. Always clearly state the expiration date on your proforma invoice to avoid disputes if prices or availability change.

You need a proforma invoice when: a buyer requests a formal quote before placing an order, the buyer needs documentation for import license applications, the buyer requires it for letter of credit arrangements with their bank, customs authorities require advance declaration of shipment values, or when negotiating terms with a new customer. It's standard practice in international B2B transactions.

Yes, prices can change after issuing a proforma invoice, especially if the validity period has expired or if significant changes occur (currency fluctuations, raw material costs, quantity changes). However, changing prices after a buyer has relied on the proforma to arrange financing or licenses can damage trust. Best practice is to honor quoted prices within the validity period and communicate any changes promptly.

While not legally required in most cases, signing a proforma invoice adds professionalism and can provide assurance to the buyer. Some countries and some letter of credit requirements specifically request signed proforma invoices. Adding an authorized signature shows the quote is official and approved by your company.

Use the currency agreed upon with your buyer or the currency you intend to invoice in. Major trading currencies like USD, EUR, or GBP are common in international trade. Be consistent - the currency on your proforma should match what will appear on the final commercial invoice. Clearly state the currency code to avoid confusion.

Yes, once the buyer accepts the proforma and places an order, you can convert it to a commercial invoice. The commercial invoice will have the same product and pricing information but will reflect actual shipped quantities and include additional required fields like actual shipping dates and transport details. In ovrseas, you can easily generate both documents from the same export document.

Yes, you can create proforma invoices for free on ovrseas. Our platform allows you to generate professional proforma invoices with all required fields. Simply create an account to access the template along with other essential trade documents like Commercial Invoices, Packing Lists, and Certificates of Origin.

After acceptance, the buyer typically issues a purchase order confirming the transaction. You may receive advance payment or letter of credit arrangement depending on agreed terms. Once you prepare the goods for shipment, you issue a commercial invoice (which may be based on the proforma) along with other required shipping documents like packing list and bill of lading.

Yes, proforma invoices are often required for samples and gifts, especially in international shipping. Customs authorities need to assess the value of all incoming goods, even if no payment is involved. For samples, you would typically note "Sample, no commercial value" but still declare a fair market value for customs purposes.

Subtotal	2300			USD 42,000.00
TOTAL				USD 42,000.00

Proforma InvoiceTemplate

PROFORMA INVOICE