- What is a proforma invoice?
- When to use a proforma invoice
- Free proforma invoice template
- How to fill in a proforma invoice step-by-step
- Proforma invoice vs. commercial invoice
- Take the stress out of invoice management with Ramp
A proforma invoice is a preliminary invoice you send to a buyer before shipping goods or completing services. Having a reliable proforma invoice template saves time and reduces errors. It also gives your documents a consistent, professional look.
Below, you'll find a free downloadable template, a step-by-step guide for filling it in, and a breakdown of how proforma invoices compare to commercial invoices.
Get our free Proforma Invoice Template
What is a proforma invoice?
A proforma invoice is a preliminary document that outlines the expected cost of goods or services before a transaction is finalized. Unlike a commercial invoice, it isn't a request for payment. It's an estimate that sets expectations for both parties.
Key characteristics of a proforma invoice:
- Sent before goods ship or work begins
- Not legally binding
- Used for customs declarations, financing, and purchase approvals
- Can be revised as terms are negotiated
If you're a seller in a B2B transaction, an exporter, or a service provider, you'll likely use proforma invoices regularly. Whether you're quoting a project, shipping internationally, or helping a buyer secure financing, a proforma invoice is typically the first formal document you'll send.
When to use a proforma invoice
You'd send a proforma invoice whenever you need to formalize the terms of a deal before the actual sale closes. Here are the three most common scenarios.
International trade and customs
Proforma invoices help customs officials assess duties and taxes before a shipment arrives. Buyers use them to secure import permits and arrange customs clearance ahead of time. Many countries also require a proforma invoice before issuing a letter of credit, making it a critical step in cross-border transactions.
Preliminary quotes and negotiations
A proforma invoice acts as a formal quote, more structured than an email estimate. It lets both parties review and negotiate payment terms, quantities, prices, and delivery dates before committing. It's especially useful when your client needs internal budget approval before placing an order.
Securing financing
You can present a proforma invoice to your bank to open a letter of credit or secure trade financing. The document provides enough detail (itemized costs, payment terms, delivery timeline) for lenders to evaluate the transaction and approve funding.
Free proforma invoice template
Download this free proforma invoice template to create professional invoices in minutes. The template includes pre-formatted fields for seller and buyer details, itemized line items, payment terms, delivery information, and totals.
Available formats:
- Word: Easy to edit and customize with your branding
- Excel: Includes formulas for automatic line-item totals
- PDF: Ready to fill in and send as-is
Get our free Proforma Invoice Template
You can customize the template by adding your logo, adjusting fields to fit your industry, and saving a copy as your standard proforma invoice format. Once set up, you'll have a reusable sample proforma invoice template for every transaction.
How to fill in a proforma invoice step-by-step
Filling in a proforma invoice correctly the first time prevents delays at customs, avoids back-and-forth with buyers, and keeps your records clean.
Step 1: Open the template
After downloading, open the template in Microsoft Word or your preferred editing tool.
Step 2: Enter your business details
At the top of the template, input your business name, address, contact information, and logo (if applicable).
Step 3: Add your client's information
In the designated section, provide the client's details, including their name, address, and contact information.
Step 4: Assign a unique invoice number and issue date
Every invoice needs a unique number for easy tracking and record-keeping. Add the invoice's issue date as well, so both you and your client can refer to it easily when needed.
Sequential numbering matters for record-keeping and auditing. It creates a clear paper trail, supports your expense management process, and makes it easier to locate specific transactions during reviews.
Use a consistent format like PI-001, PI-002 to distinguish proforma invoices from commercial invoices in your system. This small step keeps your proforma invoice sample files organized as volume grows.
Step 5: Fill in the details of goods or services
Use the provided table to list the items or services you're invoicing for. Include a clear description, quantity, unit price, and total cost for each line item.
For services, specify the work completed and its cost. For goods, describe the product details accurately.
For international shipments, include accurate unit descriptions. Customs officials may use line-item details to classify goods and calculate duties.
Step 6: State payment terms
Specify payment terms at the bottom of the invoice, including due dates and accepted payment methods. If applicable, note any early payment discounts or late payment penalties to encourage timely payments.
Common payment terms used with proforma invoices include net 30, net 60, and payment before shipment. The right choice depends on your relationship with the buyer and the transaction size.
For international trade, specify the currency on the proforma invoice format to avoid confusion. A buyer in Europe and a seller in the U.S. need to agree on whether pricing is in USD or EUR before the deal moves forward.
Step 7: Add delivery information
If delivery details are relevant, include estimated delivery dates and shipping methods. This helps set client expectations and adds transparency to the transaction.
For international transactions, reference the applicable International Commercial Term (Incoterm) to clarify who's responsible for shipping costs, insurance, and risk. Common Incoterms include Free on Board (FOB), Cost Insurance and Freight (CIF), and Ex Works (EXW). These standardized trade terms, published by the International Chamber of Commerce, remove ambiguity from cross-border deals.
Delivery estimates on a proforma invoice are non-binding, but they set buyer expectations and give both sides a timeline to plan around.
Step 8: Double-check for accuracy
Review all details carefully: totals, contact information, and payment terms. Make sure everything is correct before sending the invoice.
Step 9: Send your invoice
Once finalized, share the invoice with your client via email or your preferred method. Save a copy for your records to track the invoice status and follow up as needed. If you're processing invoices at volume, accounts payable automation can handle tracking and follow-ups for you.
Proforma invoice vs. commercial invoice
A proforma invoice is an estimate, and a commercial invoice is a bill. The main difference is that a proforma invoice isn't legally binding, while a commercial invoice is.
| Proforma invoice | Commercial invoice | |
|---|---|---|
| Purpose | Estimate or preliminary quote | Official request for payment |
| Timing | Sent before goods ship or work begins | Sent after goods ship or work is completed |
| Legal status | Not legally binding | Legally binding |
| Content | Estimated costs (may change) | Final costs and payment terms |
Once both parties agree on the terms in a proforma invoice, the seller issues a commercial invoice to formalize the transaction. The same line items typically carry over, but the commercial invoice reflects final quantities, prices, and any adjustments you made during negotiation.
A proforma invoice sets the terms before the deal closes. The commercial invoice finalizes them and triggers payment. For a deeper comparison, see our guide on proforma vs. commercial invoices.
Take the stress out of invoice management with Ramp
Ramp Bill Pay is an autonomous AP platform that eliminates manual invoice work through four AI agents—handling everything from transaction coding and fraud detection to approval summaries and automatic card payments to vendors. The platform captures invoice data at 99% OCR accuracy and processes bills 2.4x faster than legacy AP software^1.
Need a dedicated invoice automation tool? Ramp works as a standalone solution. Want everything connected? Pair it with Ramp's corporate cards, expense management, and procurement for unified spend visibility. Either way, companies using Ramp see up to 95% improvement in financial visibility^2.
Ramp's touchless automation tackles the bottlenecks that slow AP teams down:
- Four AI agents: Automate invoice coding, flag fraud before payment, create approval summaries with vendor and pricing context, and process card-eligible payments directly through vendor portals
- Intelligent invoice capture: Extracts every line item at 99% OCR accuracy—no manual data entry required
- Automated PO matching: Compares invoices against purchase orders with 2-way and 3-way matching to catch discrepancies before payment
- Custom approval workflows: Set up multi-level approval chains with routing rules that match your org structure
- Real-time invoice tracking: See exactly where every invoice stands from receipt to payment
- Flexible payment methods: Pay vendors via ACH, card, check, or wire transfer
- International payments: Send wires to vendors in 185+ countries
- Batch payments: Pay multiple vendors in a single batch to streamline payment cycles
- Recurring bills: Automate regular vendor payments with templates
- Real-time ERP sync: Sync bidirectionally with NetSuite, QuickBooks, Xero, Sage Intacct, and more for always-current records
- AI-assisted GL coding: Automatically map transactions to the right accounts based on historical patterns
- Reconciliation: Close books faster with automatic transaction matching
Why finance teams choose Ramp
Ramp is redefining what touchless invoice processing looks like—accurate, fast, and built for how modern finance teams actually work. Run it as your standalone AP solution or connect it across your full spend stack for end-to-end control.
Over 2,100 verified reviewers on G2 rate Ramp 4.8 out of 5 stars, ranking it the easiest AP software to use. Teams switch to Ramp to cut manual work, prevent costly errors, and close books faster.
Stop chasing invoices. Start automating them. Learn more about Ramp's invoice management software.
1. Based on Ramp’s customer survey collected in May’25
2. Based on Ramp's customer survey collected in May’25
FAQs
A proforma invoice template is a pre-formatted document with standard fields, including seller and buyer info, line items, payment terms, and totals, that you fill in for each transaction. It saves time by giving you a consistent structure instead of building invoices from scratch.
The seller or service provider typically prepares the proforma invoice. It's sent to the buyer as a formal estimate before the transaction is finalized. In international trade, the exporter creates it so the importer can arrange customs clearance and financing.
Excel doesn't include a built-in proforma invoice template, but you can download free proforma invoice templates in Excel format, including the one above. Excel templates let you customize fields, add formulas for automatic totals, and save a master copy for reuse.
You generally shouldn't pay a proforma invoice because it isn't a formal request for payment. Wait for the seller to issue a commercial invoice with final amounts before sending payment. The proforma is an estimate, and the final invoice is the bill.
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