Proforma invoice vs invoice
A proforma looks like an invoice and does a completely different job: it tells the customer what the bill will be so they can arrange to pay it.
The difference in one line
A proforma invoice is a priced commitment issued before the sale is final. An invoice is the demand for payment for a sale that has happened.
Why a proforma exists
Because some customers can't pay until they have a document to pay against. Finance departments need figures to raise a payment. Buyers paying up front want the total, including shipping and taxes, before they commit. Customs and freight paperwork often calls for a priced document before goods move. A proforma covers all of that without you booking revenue you haven't earned.
What changes in your records
An invoice normally enters your sales ledger, carries a sequential number and becomes part of your tax records. A proforma typically does none of that — it isn't a demand for payment and shouldn't be treated as one in your books. It's also the reason a proforma is usually labelled clearly and often numbered separately. How your jurisdiction treats each is worth checking with your accountant.
The sequence
- Customer wants figures in advance → send a proforma.
- They approve, pay or place the order → do the work or ship the goods.
- Issue the real invoice, matching the proforma line for line.
Make either one
Use the proforma invoice generator first, then the invoice generator for the real thing. If you simply want to price work you haven't won yet, a quote is the better document.