{"id":27746,"date":"2025-02-11T09:00:00","date_gmt":"2025-02-11T14:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=27746"},"modified":"2025-04-24T10:54:21","modified_gmt":"2025-04-24T14:54:21","slug":"what-is-a-pro-forma-invoice","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-pro-forma-invoice\/","title":{"rendered":"What is a pro forma invoice?\u00a0"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is a pro forma invoice?\u00a0\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-02-11T09:00:00-05:00\">February 11, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is a pro forma invoice?\u00a0\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-pro-forma-invoice\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/ryangrundy\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/11\/Ryan-Grundy.jpg\" class=\"entry-author__image\" alt=\"ryan-grundy\" \/>\t\t\t\t<span class=\"entry-author__name\">Ryan Grundy<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p><em>Wondering about the difference between a pro forma and a regular invoice\u2014or when to use a pro forma invoice? You\u2019re not alone.<\/em>&nbsp;<\/p>\n\n\n\n<p>Like all invoices, a pro forma invoice outlines a sale between a buyer and a seller\u2014but there&#8217;s more to it than meets the eye. While it resembles a regular invoice, a pro forma invoice serves a distinct purpose and can&#8217;t be used interchangeably with standard invoices.&nbsp;<\/p>\n\n\n\n<p>Understanding the key distinctions is important for managing your accounts payable and avoiding costly mistakes. This article covers everything you need to know.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-9571ec4e-0c5d-41b2-b0c2-e077f14fd64b\">Download your free invoice templates<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-pro-forma-invoice-meaning-nbsp\" data-level=\"2\">Pro forma invoice meaning &nbsp;<\/a><\/li><li><a href=\"#h-what-is-a-pro-forma-invoice-used-for-nbsp\" data-level=\"2\">What is a pro forma invoice used for? &nbsp;<\/a><\/li><li><a href=\"#h-what-s-in-a-pro-forma-invoice-nbsp\" data-level=\"2\">What&rsquo;s in a pro forma invoice? &nbsp;<\/a><\/li><li><a href=\"#h-pro-forma-invoice-example-nbsp\" data-level=\"2\">Pro forma invoice example &nbsp;<\/a><\/li><li><a href=\"#h-sample-pro-forma-invoice-template-nbsp\" data-level=\"2\">Sample pro forma invoice template &nbsp;<\/a><\/li><li><a href=\"#h-what-are-the-benefits-of-using-a-pro-forma-invoice-nbsp\" data-level=\"2\">What are the benefits of using a pro forma invoice? &nbsp;<\/a><\/li><li><a href=\"#h-disadvantages-of-a-pro-forma-invoice-nbsp\" data-level=\"2\">Disadvantages of a pro forma invoice &nbsp;<\/a><\/li><li><a href=\"#h-pro-forma-invoice-versus-invoice-nbsp\" data-level=\"2\">Pro forma invoice versus invoice &nbsp;<\/a><\/li><li><a href=\"#h-pro-forma-invoice-versus-commercial-invoice-nbsp\" data-level=\"2\">Pro forma invoice versus commercial invoice &nbsp;<\/a><\/li><li><a href=\"#h-pro-forma-invoice-versus-purchase-order-nbsp\" data-level=\"2\">Pro forma invoice versus purchase order &nbsp;<\/a><\/li><li><a href=\"#h-seamlessly-handle-pro-forma-invoices-with-cloud-based-invoicing-software\" data-level=\"2\">Seamlessly handle pro forma invoices with cloud-based invoicing software<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pro-forma-invoice-meaning-nbsp\"><strong>Pro forma invoice meaning<\/strong>&nbsp;<\/h2>\n\n\n\n<p>A pro forma invoice is an estimated invoice that you send to the buyer before delivering the goods or services, asking for payment upfront. It lists what you\u2019re selling, the total amount, and key details about the transaction.&nbsp;<\/p>\n\n\n\n<p>Looking at <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-an-invoice\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>invoice definitions<\/strong><\/a>, a regular invoice is a document showing what\u2019s owed for goods or services you have delivered. The pro forma version is essentially a \u201cgood faith\u201d promise between you and the buyer, so they know what to expect.&nbsp;<\/p>\n\n\n\n<p>For example, if you need payment upfront to lock in financing before you can make the goods or deliver the service, a pro forma invoice lays out all these details before any work is done.\u202f&nbsp;<\/p>\n\n\n\n<p>It\u2019s not an actual request for payment. It confirms some details while letting the buyer know of any other parts that still need to be finalized. In that sense, a pro forma invoice is closer to a quote or estimate than an invoice.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-a-pro-forma-invoice-legally-binding-nbsp\"><strong>Is a pro forma invoice legally binding?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>No, even though it includes many of the same details as a final sales invoice, a pro forma invoice doesn\u2019t have the same legal power. You can\u2019t use it for accounting or as a binding contract.&nbsp;<\/p>\n\n\n\n<p>Your customer doesn\u2019t have to pay what\u2019s listed, and it won\u2019t show up in their accounts payable or your accounts receivable.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-can-a-pro-forma-invoice-be-canceled-nbsp\"><strong>Can a pro forma invoice be canceled?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>A pro forma invoice is just a preview of a potential transaction based on what your buyer has ordered, so cancellation isn\u2019t necessary.\u202f&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-pro-forma-invoice-used-for-nbsp\"><strong>What is a pro forma invoice used for?<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Pro forma invoices help both buyers and sellers understand the terms of the agreement, including pricing, items, and delivery details. It\u2019s not a demand for payment, but can form the basis for agreeing on prices and terms.\u202f&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-do-businesses-use-pro-forma-invoices-nbsp\"><strong>Why do businesses use pro forma invoices?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>Issuing a pro forma invoice means you\u2019re giving your buyer a heads up about what to expect in terms of cost, delivery, and other details, like commission. It keeps things clear and can help prevent surprises or disagreements down the line, once the goods or services are delivered.\u202f&nbsp;<\/p>\n\n\n\n<p>These types of invoices have various use cases, including for manufacturing businesses that sell custom orders and businesses that need to get orders passed through international customs.&nbsp;<\/p>\n\n\n\n<p>Pro forma invoices are good for custom orders, as they make your buyer aware of how much their requested item will cost upfront before production starts.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-should-a-business-send-a-pro-forma-invoice-nbsp\"><strong>When should a business send a pro forma invoice?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>You should send a pro forma invoice when an order is placed, well before shipping.&nbsp;<\/p>\n\n\n\n<p>It&#8217;s a way to confirm the details and pricing upfront and avoid having to go back and forth later. It&#8217;s especially useful if you&#8217;re dealing with international shipments.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-in-a-pro-forma-invoice-nbsp\"><strong>What\u2019s in a pro forma invoice?<\/strong>&nbsp;<\/h2>\n\n\n\n<p>A pro forma invoice is packed with information. Here are the details of what makes up this preliminary document:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Detailed descriptions of the goods<\/strong>: this means the country of origin and the product classification. (Think the Harmonized System or Schedule B number that U.S. Customs uses for figuring out duties and taxes.)\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Price of the products<\/strong>: how much are you charging?\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Delivery terms<\/strong>: where\u2019s the package coming from, and where\u2019s it going? When can the customer expect delivery?\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Validity or expiration date<\/strong>: how long is the stated price good for?\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The term \u201cpro forma invoice\u201d:<\/strong> let the buyer know it\u2019s just a preview, not the final bill.\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Check out our entire range of <a href=\"https:\/\/www.sage.com\/en-us\/blog\/free-invoice-templates-simple\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>free invoice templates<\/strong><\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pro-forma-invoice-example-nbsp\"><strong>Pro forma invoice example<\/strong>&nbsp;<\/h2>\n\n\n\n<p>As an example of a pro forma invoice in action, imagine you work for a veterinary group and get an order for 1,000 pet care packages. Instead of jumping straight into packing, you send a pro forma invoice with the price, delivery date, payment terms, and any discounts.&nbsp;<\/p>\n\n\n\n<p>This lets the buyer check the details and negotiate if needed. Once everyone\u2019s on the same page, you finalize the pro forma, start packing, and then send the actual invoice. It\u2019s a smoother way to handle orders and avoid mix-ups at the last minute.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sample-pro-forma-invoice-template-nbsp\"><strong>Sample pro forma invoice template<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Of course, the format of a pro forma invoice can vary depending on the nature of your business and products or services. But we\u2019ve outlined a basic template below for illustrative purposes:&nbsp;<\/p>\n\n\n\n<p><strong>Seller information:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company Name: ___________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Address: ________________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Phone: _________________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Email: _________________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Buyer information:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company Name: ___________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Address: ________________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Phone: _________________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Email: _________________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Invoice number:<\/strong> _________________________&nbsp;<br><strong>Invoice date:<\/strong> _________________________________&nbsp;<br><strong>Payment due date:<\/strong> ______________________________&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/image-3.png\" alt=\"\" class=\"wp-image-27750\"\/><\/figure>\n\n\n\n<p><strong>Itemized list of goods\/services:<\/strong>&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>Item Description&nbsp;<\/td><td>Quantity&nbsp;<\/td><td>Unit Price&nbsp;<\/td><td>Total Price&nbsp;<\/td><\/tr><tr><td>________________________&nbsp;<\/td><td>________&nbsp;<\/td><td>__________&nbsp;<\/td><td>___________&nbsp;<\/td><\/tr><tr><td>________________________&nbsp;<\/td><td>________&nbsp;<\/td><td>__________&nbsp;<\/td><td>___________&nbsp;<\/td><\/tr><tr><td>________________________&nbsp;<\/td><td>________&nbsp;<\/td><td>__________&nbsp;<\/td><td>___________&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/image.png\" alt=\"\" class=\"wp-image-27747\"\/><\/figure>\n\n\n\n<p><strong>Subtotal:<\/strong> ___________&nbsp;<br><strong>Tax (if applicable):<\/strong> ___________&nbsp;<br><strong>Shipping costs:<\/strong> ___________&nbsp;<br><strong>Total amount due:<\/strong> ___________&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/image-1.png\" alt=\"\" class=\"wp-image-27748\"\/><\/figure>\n\n\n\n<p><strong>Terms &amp; conditions:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Payment due by: ___________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Delivery date: _____________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Other terms: _____________________________&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/02\/image-2.png\" alt=\"\" class=\"wp-image-27749\"\/><\/figure>\n\n\n\n<p><strong>Signature:<\/strong> ___________________________&nbsp;<br><strong>Date:<\/strong> ________________________________&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-benefits-of-using-a-pro-forma-invoice-nbsp\"><strong>What are the benefits of using a pro forma invoice?<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Using a pro forma invoice offers several key benefits for both buyers and sellers. Here\u2019s why you may want to use one:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Transparency: <\/strong>it\u2019s like a clear window into the deal, showing both sides exactly what\u2019s agreed upon.\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Streamlines sales process: <\/strong>it makes things smoother between the seller and buyer before the purchase is locked in. There will be less back and forth and more getting things done.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tool for negotiations: <\/strong>since it\u2019s not a final bill, both sides can use it to tweak terms or make changes to the order.\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-disadvantages-of-a-pro-forma-invoice-nbsp\"><strong>Disadvantages of a pro forma invoice<\/strong>&nbsp;<\/h2>\n\n\n\n<p>While pro forma invoices have their perks, they\u2019re not without their downsides:\u202f&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Potential for misunderstanding:<\/strong> customers might get confused and think it\u2019s the actual invoice. This could lead to payment mix-ups.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Absence of legal weight: <\/strong>these aren\u2019t legally binding, so you can\u2019t force your customer to pay just because you sent one. If a buyer backs out, you could lose out if you\u2019ve already started making the products\/working on the services.\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Possible changes in final cost: <\/strong>the pro forma might not match the final bill if costs or taxes change, potentially leading to arguments about what\u2019s actually owed.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-9571ec4e-0c5d-41b2-b0c2-e077f14fd64b\">Download your free invoice templates<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pro-forma-invoice-versus-invoice-nbsp\"><strong>Pro forma invoice versus invoice<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Let\u2019s look at the difference between a pro forma invoice and a regular invoice. This will also give you an idea of <a href=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-write-an-invoice\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>how to write an invoice<\/strong><\/a> that really works.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>&nbsp;<\/td><td><strong>Pro forma invoice<\/strong>&nbsp;<\/td><td><strong>Invoice\u202f<\/strong>&nbsp;<\/td><\/tr><tr><td><strong>Purpose<\/strong>&nbsp;<\/td><td>Preview of terms and costs&nbsp;<\/td><td>Final request for payment&nbsp;<\/td><\/tr><tr><td><strong>Legally binding\u202f<\/strong>&nbsp;<\/td><td>No&nbsp;<\/td><td>Yes&nbsp;<\/td><\/tr><tr><td><strong>Uses<\/strong>&nbsp;<\/td><td>Early estimate, pre-sale negotiation&nbsp;<\/td><td>Final sale confirmation, payment request&nbsp;<\/td><\/tr><tr><td><strong>Flexibility\u202f<\/strong>&nbsp;<\/td><td>Can be adjusted before final deal&nbsp;<\/td><td>Fixed and final. No changes allowed&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pro-forma-invoice-versus-commercial-invoice-nbsp\"><strong>Pro forma invoice versus commercial invoice<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Pro forma invoices are useful for international trade too. U.S. Customs often needs them before you send out the real commercial invoice.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>&nbsp;<\/td><td><strong>Pro forma invoice<\/strong>&nbsp;<\/td><td><strong>Commercial invoice\u202f<\/strong>&nbsp;<\/td><\/tr><tr><td><strong>Purpose\u202f<\/strong>&nbsp;<\/td><td>Initial estimate, not a demand for payment&nbsp;<\/td><td>Official document for payment and customs&nbsp;<\/td><\/tr><tr><td><strong>Legally binding<\/strong>&nbsp;<\/td><td>No&nbsp;<\/td><td>Yes&nbsp;<\/td><\/tr><tr><td><strong>Use case<\/strong>&nbsp;<\/td><td>Pre-sale, negotiation, or customs guess&nbsp;<\/td><td>Final sale, payment collection, US customs&nbsp;<\/td><\/tr><tr><td><strong>Detail level<\/strong>&nbsp;<\/td><td>Can be much less detailed&nbsp;<\/td><td>Must include detailed transaction info&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pro-forma-invoice-versus-purchase-order-nbsp\"><strong>Pro forma invoice versus purchase order<\/strong>&nbsp;<\/h2>\n\n\n\n<p>A pro forma invoice is a preview of costs and terms, while a <strong><a href=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-purchase-order\/\">purchase order<\/a> <\/strong>is a formal request from the buyer to buy something. Here\u2019s how they differ.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>&nbsp;<\/td><td><strong>Pro forma invoice<\/strong>&nbsp;<\/td><td><strong>Purchase order<\/strong>&nbsp;<\/td><\/tr><tr><td><strong>Purpose<\/strong>&nbsp;<\/td><td>Estimate and terms preview&nbsp;<\/td><td>Buyer\u2019s formal request to purchase&nbsp;<\/td><\/tr><tr><td><strong>Legally binding<\/strong>&nbsp;<\/td><td>No&nbsp;<\/td><td>Yes, once accepted by seller&nbsp;<\/td><\/tr><tr><td><strong>Use<\/strong>&nbsp;<\/td><td>Inform buyer of costs and terms&nbsp;<\/td><td>Confirm what buyer wants to buy&nbsp;<\/td><\/tr><tr><td><strong>Initiator\u202f<\/strong>&nbsp;<\/td><td>Seller\u2019s document&nbsp;<\/td><td>Buyer\u2019s document&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-seamlessly-handle-pro-forma-invoices-with-cloud-based-invoicing-software\"><strong>Seamlessly handle pro forma invoices with cloud-based invoicing software<\/strong><\/h2>\n\n\n\n<p>Pro forma invoices can make your business life easier by keeping things transparent and organized before the sale is final. However, you need to make sure your clients or customers know that what they\u2019re being given is not the final invoice.\u202f&nbsp;<\/p>\n\n\n\n<p>Leverage powerful cloud-based invoicing software to cut down on errors, get paid faster, and have all your invoicing needs at your fingertips, whether you\u2019re in the office or on the move:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Save time and money: <\/strong>issue invoices quickly, reduce errors, and cut costs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Automate invoicing<\/strong>: generate, send, track and manage invoices automatically.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Create accurate digital invoices: <\/strong>avoid disputes and simplify billing.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Receive payments on time: <\/strong>guarantee that invoices reach clients promptly with clear payment terms.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Manage invoices on the go: <\/strong>access and manage your invoices anytime, anywhere.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Get started today and see how automated <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/invoicing\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>invoicing software<\/strong><\/a> can streamline your business.&nbsp;<\/p>\n\n\n\n<p><\/p>\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Free Invoice Templates<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Free invoice templates, designed for you in mind.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-9571ec4e-0c5d-41b2-b0c2-e077f14fd64b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t<div class=\"single-cta__downloads\">\n\t\t\t\t\t\n\t\t\t\t\t24,386 readers have downloaded these templates\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1400801126-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1400801126-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A pro forma invoice outlines the upcoming transaction details based on a buyer&#8217;s order without requesting payment. Create pro forma invoices easily with Sage.<\/p>\n","protected":false},"author":1398,"featured_media":9192,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[43],"tags":[110,168],"business_type":[40,41],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[209,462],"coauthors":[591],"class_list":["post-27746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-sage-accounting","business_type-small-business","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Ryan Grundy","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-642394299.jpg","imagine_tags":{"209":"Accounting","462":"Payments"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/27746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1398"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=27746"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/27746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/9192"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=27746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=27746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=27746"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=27746"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=27746"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=27746"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=27746"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=27746"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=27746"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=27746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}