Shipping Documents
Proforma Invoice — format & how it differs from a commercial invoice
A preliminary invoice sent before a sale is confirmed — used for quotes, advance payment, and import permits. Here's the proforma invoice format and how to prepare one.
A proforma invoice is a preliminary invoice an exporter sends to a buyer before the sale is finalised. It sets out the goods, estimated price, and terms — used for quotations, arranging advance payment, and obtaining import permits or letters of credit.
Overview
What is a proforma invoice?
The proforma invoice looks similar to a commercial invoice but is issued earlier and is not a demand for payment. Buyers use it to apply for import licences, open letters of credit, or arrange financing. Once the order is confirmed and goods ship, the exporter issues the final commercial invoice, which must broadly agree with the proforma.
Contents
What a proforma invoice contains
Exporter and buyer details
Proforma invoice number and date
Description of goods, HS code and quantity
Estimated unit price and total value
Currency and Incoterms
Validity period of the quote
Estimated delivery / shipment terms
Bank and payment details
How to prepare
Preparing a proforma invoice, step by step
Add parties and reference
Enter exporter and buyer details with a unique proforma invoice number and date.
Quote the goods
List the goods with HS code, quantity, and estimated unit prices.
State terms
Specify currency, Incoterms, estimated delivery, and the validity period of the quote.
Add payment details
Include payment terms and bank details so the buyer can arrange advance payment or an L/C.
Mark as proforma
Clearly label the document "Proforma Invoice" so it is not mistaken for a payment demand.
Generate it automatically
Create a proforma invoice in CargoFide
CargoFide's Document Builder generates your proforma invoicefrom shipment data, keeps it consistent with your other documents, and cross-checks for discrepancies before it's issued.
FAQ
Proforma Invoice — common questions
What is a proforma invoice?
A proforma invoice is a preliminary invoice sent before a sale is finalised. It states the goods, estimated price, and terms, and is used for quotations, advance payment, and obtaining import permits or letters of credit.
Is a proforma invoice legally binding?
A proforma invoice is generally not a binding demand for payment — it is a good-faith quote. The binding document is the commercial invoice issued once goods ship.
Can a proforma invoice be used for customs?
Customs clearance uses the commercial invoice, not the proforma. However, buyers often use the proforma to obtain import licences or open a letter of credit before the goods ship.
Can CargoFide create a proforma invoice?
Yes — you can generate a proforma invoice in CargoFide and later convert it into a commercial invoice, keeping the details consistent across both.
Related documents