How to Create a Proforma Invoice: Template, Examples & Best Practices

A proforma invoice is one of the most useful — and most misunderstood — business documents. It's not a demand for payment. It's a formal commitment to deliver goods or services at a stated price. And if you sell internationally, banks and customs authorities expect to see one.

This guide walks you through creating a proforma invoice from scratch, with examples and best practices.

When You Need a Proforma Invoice

International sales — buyers need it for import licences, letters of credit, and customs pre-clearance Formal quotations — when a client needs a detailed, invoice-formatted quote for budget approval

• International sales — buyers need it for import licences, letters of credit, and customs pre-clearance
• Formal quotations — when a client needs a detailed, invoice-formatted quote for budget approval
• New client relationships — to formalise pricing before starting work
• Custom or made-to-order products — to confirm specs and pricing before production
• Grant or funding applications — organisations may need proforma invoices to justify purchases

Step-by-Step: Creating a Proforma Invoice

Step 1: Label It Clearly

Write "PROFORMA INVOICE" prominently at the top. This prevents confusion with a commercial invoice and ensures it's not accidentally processed as a payment demand.

Step 2: Add Your Business Details

• Business name and logo
• Address
• Tax ID (VAT number, GSTIN, TIN, ABN, etc.)
• Contact email and phone

Step 3: Add Buyer Details

• Buyer's business name
• Address (including country for international trade)
• Tax ID (if applicable)
• Contact person

Step 4: Assign a Proforma Invoice Number

Use a separate numbering sequence from your commercial invoices:

• PI-2026-001, PI-2026-002...
• Or PRO-001, PRO-002...

Never use your main invoice number sequence — proforma invoices are not revenue and shouldn't appear in your tax filings.

Step 5: Add Date and Validity Period

• Issue date — when you're sending the proforma
• Valid until — how long the pricing is guaranteed (typically 15-30 days)

Step 6: Itemise Products or Services

Include the same level of detail as a commercial invoice:

For international trade, also include:

• HS codes — Harmonized System tariff codes for each product
• Country of origin
• Weight and dimensions
• Incoterms (FOB, CIF, DDP, etc.)

Step 7: Calculate Totals

• Subtotal
• Estimated taxes (VAT/GST/duties)
• Shipping and handling (if applicable)
• Total estimated cost

Step 8: Add Payment Terms

State the terms that will apply if the buyer proceeds:

• Payment method (bank transfer, letter of credit, etc.)
• Payment timeline (e.g., 50% deposit, 50% on delivery)
• Currency
• Bank details (for international wire transfers: SWIFT/BIC, IBAN)

Step 9: Add Notes

• "This is a proforma invoice and not a demand for payment" — clarifies the document's status
• Estimated delivery timeline
• Any conditions or assumptions

Proforma Invoice Best Practices

Proforma Invoice Best Practices includes: Be accurate — the commercial invoice should closely match the proforma; significant differences raise red flags with customs Set an expiry date — prices change; protect yourself with a validity period

1. Be accurate — the commercial invoice should closely match the proforma; significant differences raise red flags with customs
2. Set an expiry date — prices change; protect yourself with a validity period
3. Keep records — even though proformas aren't tax documents, keep copies for reference
4. Convert to commercial invoice — when the sale proceeds, create a proper commercial invoice (ideally with a reference to the proforma number)
5. Use consistent formatting — your proforma should look as professional as your commercial invoices

Create professional proforma invoices in minutes with Invoicemonk's invoice generator. For the difference between proforma and commercial invoices, read our detailed comparison.