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Pro Forma Invoice

LegalInvoices and Receipts
Seller, buyer and dates
Goods quoted
Currency symbol
Goods
DescriptionQtyUnit price Remove
Charges and terms
Sales tax or VAT
Estimated total —
Goods subtotal
—
Tax
—
Advance payment
—
Balance on shipment
—
Quote valid until
—
Pro forma text
—

A pro forma invoice is a priced preview of a sale, sent before delivery so the buyer can arrange payment, an import licence or a letter of credit. Quote 100 mugs at £12.50 with £150 delivery and 20% VAT and the document shows £1,680, with £504 due up front at a 30% advance.

About this tool

Exporters, wholesalers and makers who take orders before production send a pro forma so the buyer knows exactly what will be billed. Customs brokers, banks issuing letters of credit and import-licence offices often ask for one too. You enter the seller and buyer, a reference, the issue date and how long the offer stands, then list the goods. The generator multiplies each line, adds shipping, applies one tax rate to goods plus delivery, splits the total into an advance and a balance, and prints the date the quote expires along with the delivery term you pick. The text block is ready to paste onto letterhead. It is a quotation, not a tax document: it does not replace the commercial invoice issued on shipment, and it cannot tell you which duties the destination country will charge.

How to use it

  1. Name the parties and the offer period

    Fill in seller, buyer, a pro forma reference and the issue date, then set how many days the quote stays valid with the stepper.

  2. List the goods

    Choose a currency symbol and enter description, quantity and unit price per row; Add a product line gives more rows.

  3. Set charges and terms

    Enter shipping, pick an Incoterm, switch on tax with its rate if it applies, and drag the advance payment slider.

  4. Copy the pro forma text

    Check the estimated total, advance, balance and expiry date, then copy the text block into your email or letterhead.

Examples

100 mugs with delivery, VAT and a 30% advance

Seller
Fenwick Ceramics Ltd, Stoke-on-Trent
Buyer
Harbour Home Store, Belfast
Pro forma reference
PF-2041
Date issued
2026-10-01
Quote valid for
30
Currency symbol
£
Goods
Stoneware mugs × 100 × 12.5
Shipping and handling
150
Delivery terms (Incoterm)
DAP – Delivered At Place
Sales tax or VAT
Add tax
Tax rate
20
Advance payment
30

Result Estimated total: 1,680.00
Goods subtotal: 1,250
Tax: 280
Advance payment: 504
Balance on shipment: 1,176
Quote valid until: October 31, 2026
Pro forma text: PRO FORMA INVOICE PF-2041
Not a demand for payment. Final commercial invoice follows on shipment.

Seller:
Fenwick Ceramics Ltd, Stoke-on-Trent

Buyer:
Harbour Home Store, Belfast

Date issued: October 1, 2026
Quote valid until: October 31, 2026 (30 days)
Delivery terms: DAP (Delivered At Place)

1. Stoneware mugs – 100 x £12.50 = £1250.00

Goods subtotal: £1250.00
Shipping and handling: £150.00
Tax (20%): £280.00
Estimated total: £1680.00
Advance payment (30%): £504.00
Balance on shipment: £1176.00

  1. Line 1: 100 × 12.50 = 1250.00
  2. Goods subtotal = 1250.00
  3. Taxable base = 1250.00 + shipping 150.00 = 1400.00
  4. Tax = 1400.00 × 20% = 280.00
  5. Estimated total = 1400.00 + 280.00 = 1680.00
  6. Advance = 1680.00 × 30% = 504.00; balance = 1176.00

£1,250 of goods plus £150 delivery is taxed at 20%, giving £1,680; the buyer pays £504 up front and £1,176 when the goods ship.

Two parts quoted FOB with 50% advance

Seller
Ningbo Valve Co.
Buyer
Ortiz Industrial, Monterrey
Pro forma reference
Q-77
Date issued
2026-03-10
Quote valid for
15
Currency symbol
$
Goods
Brass gate valve DN50 × 40 × 18.75; Gasket set × 40 × 2.1
Delivery terms (Incoterm)
FOB – Free On Board
Sales tax or VAT
No tax
Advance payment
50
Shipping and handling
0

Result Estimated total: 834.00
Goods subtotal: 834
Tax: 0
Advance payment: 417
Balance on shipment: 417
Quote valid until: March 25, 2026
Pro forma text: PRO FORMA INVOICE Q-77
Not a demand for payment. Final commercial invoice follows on shipment.

Seller:
Ningbo Valve Co.

Buyer:
Ortiz Industrial, Monterrey

Date issued: March 10, 2026
Quote valid until: March 25, 2026 (15 days)
Delivery terms: FOB (Free On Board)

1. Brass gate valve DN50 – 40 x $18.75 = $750.00
2. Gasket set – 40 x $2.10 = $84.00

Goods subtotal: $834.00
Estimated total: $834.00
Advance payment (50%): $417.00
Balance on shipment: $417.00

  1. Line 1: 40 × 18.75 = 750.00
  2. Line 2: 40 × 2.10 = 84.00
  3. Goods subtotal = 834.00
  4. Taxable base = 834.00 + shipping 0.00 = 834.00
  5. Estimated total = 834.00 + 0.00 = 834.00
  6. Advance = 834.00 × 50% = 417.00; balance = 417.00

40 valves at $18.75 and 40 gasket sets at $2.10 total $834; half, $417, is asked before production.

How it is calculated

Line = qty × unit price; Goods = sum of lines; Base = Goods + shipping; Tax = Base × rate ÷ 100; Total = Base + Tax; Advance = Total × advance % ÷ 100; Balance = Total − Advance; Valid until = issue date + validity days

qty
Units of one product on a line
shipping
Freight and handling charged to the buyer
rate
Sales tax or VAT percentage, applied to goods and shipping together
advance %
Share of the total the buyer pays before the goods are made or shipped

Each line is rounded to the cent before summing. Shipping is added to the taxable base because in the UK and many other VAT systems delivery charged with the goods follows the goods' VAT rate. The advance is rounded to the cent and the balance is the remainder, so the two always add back to the total. Validity counts calendar days from the issue date.

Sources

When not to use it

  • Once goods have shipped, issue a commercial or tax invoice; a pro forma does not record a sale.
  • Zero-rated exports and mixed tax rates need a per-line tax treatment this layout does not apply.
  • Customs entries need HS codes, weights and origin details that must be added in the remarks field.

Common mistakes

  • Booking a pro forma in the sales ledger as if it were revenue.
  • Leaving out a validity date, so the buyer holds you to old prices months later.
  • Quoting an Incoterm such as DDP without pricing in the duties and freight it obliges you to pay.
  • Letting the figures on the final commercial invoice drift from the pro forma the bank approved.

Frequently asked questions

How does a pro forma differ from a commercial invoice?

A pro forma is sent before the sale is completed and states what will be charged. It asks for no payment as a debt and is not entered as revenue. The commercial invoice is issued when the goods ship or the service is delivered, carries its own sequential number and is the document tax authorities and customs rely on.

Can a buyer pay against a pro forma?

Yes, many sellers ask for an advance against it before starting production. Set the advance payment slider and the document shows the up-front amount and the balance due on shipment. Any money received should still be followed by a proper invoice for the full sale.

Why is tax charged on shipping too?

Under UK VAT rules, and in many other VAT systems, a delivery charge made with the goods takes the same rate as the goods. So £150 of delivery on standard-rated goods carries £30 VAT. If your jurisdiction treats freight differently, fold it into the remarks rather than the shipping field.

What does the Incoterm add?

It states who pays freight, insurance and duties and where risk passes from seller to buyer. FOB ends the seller's costs once goods are loaded at the port; DDP makes the seller pay everything up to the buyer's door, duties included. The term is printed on the pro forma so both sides price the same deal.

How long should a pro forma stay valid?

Many exporters use 15 to 30 days, shorter when raw-material prices or exchange rates move fast. The stepper accepts 1 to 365 days and the document prints the exact expiry date, for example 31 October for 30 days from 1 October.

Does the currency symbol convert prices?

No. It only changes the symbol printed in the text. Enter unit prices and shipping in the currency the buyer will pay, or choose None and write a code such as USD or CNY in the remarks.

Cite this tool

Using this tool in an assignment, article or report? Copy a citation, or a link for your website.

APA

Tools Directory Editorial Team. (2026, October 27). Pro Forma Invoice. Tools Directory. Retrieved October 28, 2026, from https://tools.milunir.com/legal/invoices-and-receipts/pro-forma-invoice/

MLA

Tools Directory Editorial Team. “Pro Forma Invoice.” Tools Directory, 27 Oct. 2026, https://tools.milunir.com/legal/invoices-and-receipts/pro-forma-invoice/. Accessed 28 Oct. 2026.

Chicago

Tools Directory Editorial Team. “Pro Forma Invoice.” Tools Directory. Last modified October 27, 2026. Accessed October 28, 2026. https://tools.milunir.com/legal/invoices-and-receipts/pro-forma-invoice/.

Link<a href="https://tools.milunir.com/legal/invoices-and-receipts/pro-forma-invoice/">Pro Forma Invoice – Tools Directory</a>