A pro forma invoice is a preliminary commercial document showing expected products, prices, shipping information and payment requirements before a final invoice is issued. Businesses use it for customer approval, deposits, import planning or internal authorization. Label it clearly. A pro forma document is normally preliminary, and posting it as the final accounting invoice can create a duplicate or premature receivable.
Use it before the final billing event
- To show an overseas buyer the expected shipment value and terms
- To request a deposit before production or dispatch
- To support an import permit, banking or internal approval process
- To communicate a preliminary customs value or shipping plan
- To document a no-charge or sample shipment where an authority still needs value information
| Document | Status | Typical purpose |
|---|---|---|
| Quotation | Offer | Propose products, price and terms |
| Pro forma invoice | Preliminary commercial statement | Show expected transaction or support pre-shipment action |
| Commercial invoice | Final transaction document | Bill the customer and support shipment or accounting records |
Fields that must survive into the final invoice
Include the parties, document date, product descriptions, quantities, unit and total values, currency, delivery and payment terms, shipping information and period of validity. For cross-border goods, classification, origin, weight and Incoterms may be needed. Requirements depend on the transaction and authorities involved, so the parties should confirm the required format.
Illustrative example: equipment imported from Japan
A Philippine distributor orders equipment from Japan. The exporter issues a pro forma invoice showing the equipment, JPY price, freight basis, expected ship date and required deposit. The distributor uses it for internal approval and payment preparation. After shipment, the exporter issues the commercial invoice with the actual shipment data.
Where pro forma invoices cause confusion
- Numbering or posting the document as if it were the final invoice
- Failing to label it clearly as pro forma
- Letting the final invoice differ without explaining the change
- Using expired prices or delivery assumptions
- Assuming one format satisfies every bank or customs authority
The business document templates provide a starting structure. Keep deposits and later collections connected through business payment acceptance; for supplier-side obligations, use the international vendor payments workflow.
