A pro forma invoice is an invoice sent before the goods ship. It shows the buyer exactly what they'll be billed for: the products, quantities, prices, shipping, terms and the total, so they can approve it, arrange payment, or hand it to someone who needs the details in advance. It isn't the final bill. You send the real invoice once the order ships, for what actually shipped. Small makers meet the pro forma in three places: a new buyer who pays in advance on the first order, a buyer whose own approval process needs an invoice before it can cut a check, and a buyer in another country, whose customs broker wants the goods described before they arrive. Mark it "Pro forma" clearly, give it a date it's valid until, and don't book it as a sale. In the example below, an Idaho chocolate maker sends a pro forma to a Canadian gift shop's first order.
The short version
- A pro forma invoice is a preliminary invoice, sent before shipping.
- It says what the buyer will pay: products, quantities, prices, shipping, terms, total.
- Used for advance payment, a buyer's internal approval, and orders going to another country.
- Mark it "Pro forma", give it a valid-until date, and don't record it as a sale.
- When the order ships, send the final invoice for what actually shipped.
- For cross-border orders, the buyer's broker may ask for country of origin, weights and a tariff code.
- TaroStack keeps the order and what ships against it. More below.
Pro forma, final invoice and commercial invoice
| Document | When | What it's for |
|---|---|---|
| Pro forma invoice | Before shipping | Approval, advance payment, a broker's paperwork |
| Final invoice | After shipping | The bill for what shipped, recorded as a sale |
| Commercial invoice | With a cross-border shipment | The customs document that travels with the goods |
The final invoice for a wholesale order is in wholesale invoice template, and the order itself in sales order template.
What goes on a pro forma invoice
| Part | What to write |
|---|---|
| The words "Pro forma invoice" | At the top, so nobody pays it twice or books it as a sale |
| Number and date | Your own numbering, separate from final invoices |
| Valid until | How long the prices and terms hold |
| Seller and buyer | Names and addresses, and the buyer's contact |
| Lines | Item code, description, quantity, unit price, line total |
| Shipping and terms | The shipping charge, who pays duties, payment terms |
| For cross-border orders | Country of origin, weights, and the tariff code the buyer's broker uses |
| Total | What the buyer pays |
An example: a first order from Canada
Sawtooth Chocolate Co., a made-up chocolate bar maker in Boise, Idaho, got a first order from a gift shop in Calgary, Alberta. New accounts outside the US pay in advance, so it sent a pro forma invoice:
| Item | Description | Bars | Price | Line total |
|---|---|---|---|---|
| ALM-2 | Bittersweet chocolate with almonds, 2 oz | 48 | $4.75 | $228.00 |
| HUC-2 | Milk chocolate with huckleberries, 2 oz | 48 | $4.75 | $228.00 |
| LEM-2 | White chocolate with lemon peel added, 2 oz | 24 | $4.75 | $114.00 |
| Shipping, insulated box | $85.00 | |||
| Total | 120 | $655.00 |
The pro forma says it's valid for 30 days, that payment is in advance, that the buyer pays any duties and taxes, and that the bars are made in the United States, about 15 lb packed. The shop's customs broker asked for the tariff code, which went on a revised pro forma. Payment arrived, the box shipped four days later with a commercial invoice, and the final invoice matched the pro forma because everything shipped. Had a flavor run short, the final invoice would have billed less and the difference would have been refunded or credited, as in credit note template.
Get the template
Download the pro forma invoice template. One sheet: shaded cells for your number, dates, the buyer and terms, and each line's item code, description, quantity and price; the line totals, subtotal, shipping and total work themselves out, with lines for country of origin, weight and payment terms. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
A pro forma is a promise about stock you haven't packed yet. When the order waits for payment, the same bars can be sold to someone else, and the shop pays for 48 almond bars that aren't there.
How TaroStack does it
TaroStack doesn't print pro forma invoices. It keeps the order, the stock behind it and what actually ships.
Sales orders. The Calgary order is a sales order from the day it's agreed, so it's on the list of open orders while the payment travels.
Stock by lot. Each bar's stock is kept by lot with its best-before date, and shipping can't take stock below zero, so you know before payment arrives whether the almond bars are there.
Delivery notes. The shipment's delivery note lists the lots that went, and the final invoice bills what shipped.
| The job | Folder of PDFs | In TaroStack |
|---|---|---|
| Orders waiting for payment | An email thread | Open sales orders |
| Whether the bars are on hand | Walk to the shelf | Stock by lot |
| What actually shipped | Memory | The delivery note, with lots |
Sales orders, stock by lot and delivery notes are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.