Proforma Invoice in Excel, Word, and PDF
A proforma invoice is a very important document in ensuring smooth business operations. Professional-looking invoice templates help to accurately reflect the goods or services you are providing. Explore free proforma invoice format tools that provide you with easy-to-use templates that will save you time and effort in creating invoices
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Microsoft Excel
Microsoft Excel
Microsoft Word
Microsoft Word
Google Sheets
Google Sheets
Google Doc
Google Doc
What Is a Proforma Invoice?
A proforma invoice is a document used when a transaction or sale is proposed. Once a buyer and a seller have agreed upon the terms and conditions of a particular transaction, the seller can raise a proforma invoice. The proforma invoice helps the seller document the price and other details of the transaction and get a confirmation from the buyer on the details. It is a way for the buyer to understand what to expect from the seller and keeps the entire process transparent.
This document is crucial when a new transaction is meant to happen as it allows both parties to achieve complete clarity on the proposed sale. Once the buyer and seller have agreed on the details of the proforma invoice, the seller can confidently proceed to the sale, being assured of the fact that the buyer will go ahead with the purchase as promised
Where Can You Use a Proforma Invoice?
A proforma invoice is a useful document for both the seller and the buyer when a particular transaction is to be done. There are multiple use cases of a proforma invoice as mentioned below:
Contract or project-based
As an SME manufacturer in India, you may work on multiple clients across multiple projects. When there is a job that has a defined timeline, it can be considered a contract, and a proforma invoice is used for clarity.
Consulting-based
When a particular job has a recurring theme to it, such as a consultant project, a proforma invoice can come into play. Often, the scope of work evolves from month to month for a consultant, who can use a proforma invoice to give their client an indication of the following month"s terms.
Easy tracking mechanisms
Once you have used TranZact to generate an export invoice, it is auto-recorded and captured on the TranZact dashboard. Making use of TranZact will ensure you have all your export invoice formats under GST in one place, easily accessible, and completely transparent. When you start operating at a scale, this feature will be essential as it makes tracking all your expenses very easy.
Freelance-based
When a business hires a freelancer for a project, the freelancer can raise a proforma invoice for each project they execute for the client.
Contents of Proforma Invoice
Since a proforma invoice is not legally binding, there are no mandatory rules on what it needs to contain. A proforma invoice can contain all the details that a buyer and seller deem to be necessary for a particular transaction. If you're wondering how to make a proforma invoice, ensure you have at least the following fields:
Benefits of Using Proforma Invoice Format
As a business owner, whether you are on the buyer side or the seller side, you will find that there are many advantages to using a proforma invoice format. Listed below are the key benefits you will enjoy:
Save precious time:
When you use a proforma invoice format, you will not need to go and create a new template each and every time you need to issue a proforma invoice. Simply use the format and populate it with your details. This will also ensure that there are no unwanted surprises down the road of the invoice process and that unnecessary delays are avoided.
Increase productivity:
The right proforma invoice sample will allow you to manage multiple transactions at the same time and process them successfully. When you operate at scale, this can mean an increase in your overall productivity.
Complete clarity:
A proforma invoice format allows you to easily describe the details of your particular transaction, making it clear for all parties involved thereby increasing transparency in the whole process.
Proforma Invoice Format in Excel
Creating a proforma invoice in Excel is not that difficult. Microsoft Excel is a convenient tool for creating proforma invoices because it allows you to easily calculate prices, taxes, and other details. Once you have created a new document, you can customize your proforma invoice, fill in the relevant details and send it out to your client.
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Proforma Invoice Format in Word
Microsoft Word is another software that can be used to create proforma invoice formats. You can open up a blank Word document and start by inserting the words 'Proforma Invoice' in big, bold letters on top. Make sure you include the contact details of the seller and the buyer. Mention the details of the upcoming purchase along with the total price the buyer is expected to pay. You can also save yourself some time and simply download the proforma invoice in Word from a reliable source and customize it to suit your needs.
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Proforma Invoice Format in PDF
A proforma invoice format in PDF tends to be commonly used. This particular tool is popular since it can not be edited by others unless they have specific permission from the document owner. This allows another layer of security on the document and all parties can stay assured that their information is safe. One way to work with PDF is to start with a Word or an Excel document and once you're done creating it, download it and save the document as a PDF.
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Proforma Invoice Format in Google Sheets
The primary difference between a proforma invoice in Google Sheets and Excel is that this document exists online and lies on the creator's Google Drive. A proforma invoice in Google Sheets will follow a similar set of steps as mentioned in the section for Microsoft Excel but is accessible to edit online. Once you have chosen your proforma invoice template, simply populate it with the details of your transaction, download it, and share it.
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Proforma Invoice Format in Google Docs
This particular software application exists online and hence makes collaboration very easy. In case you have a proforma invoice that needs to be checked and worked on by multiple people at your end before being sent to the buyer, a Google Doc can be very handy. You can follow the same steps given in the section for Word documents. You can also include any additional notes or comments in the footer section of the document, and then save and print the proforma invoice or email it directly to your customer.
Download FormatFAQs on Proforma Invoice Format
What is the difference between a proforma invoice and an invoice?
The main difference is that a proforma invoice is issued before a transaction to validate all the details, whereas an invoice is issued after a transaction is complete.
Why is a proforma invoice issued?
A proforma invoice is issued so that both buyer and seller can have a documented agreement on the intended purchase and all its details.
Who prepares proforma invoices?
A proforma invoice is prepared by a seller and shared with a buyer to provide a potential customer with an estimated cost for goods or services before finalizing a transaction.
What is the legal validity of a proforma invoice?
A proforma invoice does not have any legal validity and cannot be considered to be legally binding.
What is the difference between a proforma invoice and a quotation?
The primary difference between these two is that a proforma invoice contains the details that have already been agreed upon by the two parties. On the other hand, a quotation is an estimate that the seller shares with the buyer who can choose to accept or reject
TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.