A Proforma invoice is also known as a fake invoice. The invoice gives a detailed summary of the items to be shipped or delivered. The invoice is also known as preliminary invoice because it can act like a quotation of the trade or transaction that is going to occur between the seller and the buyer. It acts as a binding agreement and reasons the sale. However, it is not uncommon that the final sale details are slightly or completely different from what was quoted in the Proforma. That is why it is known as fake or not true invoice.
Although because of not being a real invoice or not being recorded in the records any format can be followed, but few definite things to be discussed in this invoice are mentioned here. The very simple yet professional invoice must include these main components like the seller’s company’s logo along with shipper’s name and address should be displayed somewhere where they are easily displayed and are visible. Similarly, receiver’s name and address should be illegible and visible as well. Other details like date and invoice number must not be skipped in any case. Mode of transport details, the number of packages and weights, items with description, price, and quantity, and tax rate, shipping and handling rates must be included in a well-made invoice as well.
The invoice must contain the name and logo of the producer or the contractor company. Name and contact details of seller and buyer should be mentioned properly on it. All the numerical like the date on which the invoice is issued, invoice number, due date and prices must be mentioned. A column should be made in which all the details about sales and services rendered should be written properly along with the prices. The total amount that is made according to the purchases and services should be written at the bottom of the invoice in bold, numbers, and words to be certain about the payments.
Information about the payment details like mode of payment should be clearly declared along with any terms of payment. The amount totaled should be written firstly before any net adjustment made like discount or account payable or receivable and then after that adjustment.
This invoice must be given to both the parties after taking the signs and should be placed in the records of both the parties for avoiding any future misunderstanding or future audit services.
Following is given a Proforma invoice template. Hopefully, this will help you to do your work in a professional way.
Proforma Invoice Template
File MS Excel .xlsx | Size 24 KB