What is a proforma invoice and when should you use one?

A proforma invoice is a preliminary bill sent before goods are delivered or work is completed. It looks like a regular invoice but is not a demand for payment and is not legally binding in the same way. Think of it as a formal quote in invoice format.

How it differs from a real invoice

• A proforma invoice is not a request for payment — it is a preview of what the invoice will look like
• It does not create an obligation to pay in the same legal sense
• It should be clearly marked "Proforma Invoice" to avoid confusion
• It cannot be used as evidence of a sale for accounting or tax purposes
• A real (commercial) invoice replaces it once the work is done or goods are delivered

When to use a proforma invoice

• When a client or purchasing department needs a document to raise a purchase order
• When requesting a deposit before starting work — some businesses send a proforma for the deposit amount
• For international shipments, where customs requires a proforma to clear goods
• When a client wants to see the invoice format before committing to the purchase

What to include

A proforma invoice should contain the same information as a regular invoice — your business details, client details, line items, pricing, and VAT — but should be clearly labelled as "Proforma Invoice" at the top and should not include an invoice number (since it is not a final bill).

Following up with a real invoice

Once the work is complete or goods are delivered, send a commercial invoice. This is the actual legal request for payment. Reference the proforma number if applicable so the client can match them up easily.