is a document sent to the buyer by the supplier indicating the cost of certain number of items to be supplied. It is sent in order to give the buyer the costs of goods so that they are able to make informed decisions and changes if need be. It also shows the buyer the commitment of the supplier to deliver. They do not include vat and customs duty therefore when the real invoice is sent, proper tax details may also be sent. Proforma invoice is not a true invoice. Proforma invoice template is an outline of how a proforma invoice should be structured. It shows what should be included in the invoice. A template makes it easier while a company is transacting because all the necessary details are in it. Whatever the product a company deals with is accommodated in the template. All one has to do is fill in the relevant fields depending on what is being sold. There are some characteristics of a good template. It should contain the company name, slogan, address, telephone number email and fax at the top. The date prepared or sent is important. The date until when the quotation is valid should be included. This expiry date helps to avoid cases where the buyer takes much time before confirming the purchase such that some things such as market prices change. It will mean a new proforma invoice reflecting the changes is drafted. A good template has the invoice number and the customer ID. Customer details such as name and address are very important and they come just below supplier details. Shipping details such as mode of shipment, the weight and the ship date must be included. It must have a tabulation of the part number, unit of measure (kg/pound), description, quantity, price per item, tax and the total cost of all the quantity of a particular item. There is a subtotal of all the cost items quoted, the tax details regarding what is taxable, the tax rate applied, total tax and any other charges that may arise in the process of shipping. Such additional charges may include insurance and special packaging. The total cost of delivery must be indicated after adding up all individual costs. There is a space below the tabulation set for the terms and conditions of the transaction and any other relevant information. The proforma invoice template should have a clear indication of the currency to be used. It should indicate which country the items are coming from and which port is being used to ship. There has to be a reason for the shipment. The terms of payment must be indicated to avoid any inconveniences. A good template will help a company or a business capture all that it needs to address in the transactions. In conclusion, proforma invoices help buyers receive all information regarding a purchase before committing. It also enables buyers obtain funding from financial institutions. Calculation of customs for imports is done before dispatch thus making the process easier.
More proforma samples below