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Download proforma invoice template in Microsoft Excel format.
Understanding a Proforma Invoice Format
A Proforma invoice format can be used for multiple functions in trade and commerce. In domestic trade the Proforma invoice format often follows acceptance of a quote by the buyer and serves as a mirror image of the commercial invoice that the seller would provide once the transaction is concluded.
The Proforma invoice format for domestic trade can vary in content when applied to international trade. In international trade, this format will generally be expanded to carry additional information such as import license particulars, vessel/liner/carrier particulars, port of entry, port of discharge, basis of delivery (FOB, C&F, and CIF etc.), country of origin, validity and other information specifically requested by the buyer.
In international transactions, it is essential that the Proforma invoices comply with the stipulations laid down by the authority regulating imports at the destination port. In such instances, the importer generally advises the seller/exporter of specific requirements in this regard and the Proforma invoice then follows those directions. In international transactions, Proforma invoices are widely used for establishing a letter of credit. The currency in which the Proforma invoice is drawn is also important since most international transactions are denominated in hard currencies such as the U.S. Dollar, GBP, and the Euro. Though there is no general ban in using other free float currencies such as the Japanese Yen, French Francs, Australian Dollar and host of others, foreign exchange regulations in the importer’s country should be taken into consideration while denominating the currency for the transaction.
For domestic transactions, the Proforma invoice is provided to the buyer to facilitate processing of advance payment or establishing an inland letter of credit in accordance with the terms agreed to between the buyer and the seller. Many of the details relating to cross border shipment and information sought by the import regulator etc., would be generally absent in Proforma invoices raised for domestic use.
The Proforma invoice format you consider should therefore relate itself to the purpose for which you would be using it. Students and others examining this format should take a comprehensive view of the formats employed in domestic as well as international trade to understand the differences. Several websites provide useful formats for the trade and industry and visitors have the ability to compare a wide range for most applications. Users intending to adopt these formats in regular business may also want to consult appropriate professionals before making a decision.
A Proforma invoice format cannot be employed for raising a commercial invoice nor can a Proforma invoice substitute a commercial invoice. A commercial invoice is the only document that is acceptable for accounting functions. Similarly, in international transactions the final shipping documents must be accompanied by an authentic commercial invoice with several copies as prescribed by the importer. However, material differences between the Proforma invoice and the commercial invoice are not acceptable. Similarly, the time lag between the Proforma invoice and the commercial invoice may also be stipulated by some regulators.