In previous blogposts, we’ve covered how and when proforma invoices are used, and whether they’re right for your business, so we’ll just provide a short recap before we get into the fastest and easiest way to create custom proforma invoices for your business.
When are proforma invoices used?
Proforma invoices are often used in lieu of quotations, as the two function similarly in within the sales process.
Essentially, proforma invoices are used before an invoice is finalised. For example, if one of your customers wishes to place an order, but first wants to see a pricing breakdown with product details, this can be achieved through use of a proforma invoice.
It’s important to note that a proforma invoice holds no binding legal value, unlike an invoice. Also unlike an invoice, your proforma should be clearly labeled as such. Likewise, an invoice should be labeled ‘Invoice’ and feature a unique invoice number that follows your invoice number sequence.
Proforma invoice allow the seller to provide details of the sale before the terms and prices are finalised. They serve as a reference point and can be a useful addition to your sales and invoicing process, ensuring that all orders are met under terms agreeable to both parties involved.
What should be included in your proforma invoice template?
As mentioned above, a proforma invoice serves a purpose more closely related to that of a quote. This means that while your proforma should include a certain set of information, it can be flexible depending on the needs of your customer. In general, all proforma invoices include:
- The issue date
- The contact details (company name, address) of both you and your customer
- A description of the goods or services to be provided
- A clear indication of the unit, quantity and price of the goods/service
- The subtotal before VAT (if applicable)
- The total cost
How to create a proforma invoice quickly & easily
Invoicing software like Debitoor not only allows you to create invoices faster than using a Word or Excel invoice template, it also gives you the tools to create and send proforma invoices equally as easily.
How to create a proforma invoice in Debitoor
Using the same invoice template you would use to create a new invoice, you can fill in customer and product details with just a click by saving them to your account and filling them in by selecting them from the drop down menu.
Then, instead of clicking ‘Complete Invoice’ as you normally would to raise a finalised invoice, you can instead click ‘Save’. Your invoice will be saved as a draft - this is your proforma invoice. When you click ‘View’ you’ll see the proforma, complete with your customised invoice design.
Your proforma invoices can be sent directly to your customer, just as you would a completed invoice. And once your customer confirms? Convert the proforma to an invoice simple by clicking ‘Complete Invoice’. You can also make adjustments according to your customer’s response.
