What a proforma invoice is
A proforma invoice is sent before a transaction is finalised. It looks like an invoice and shows the items, quantities and expected prices, but it's really a good-faith estimate or confirmation of what's about to be supplied. It helps a buyer arrange budget, internal approval or — in international trade — customs paperwork, without committing either side to a final figure.
Crucially, a proforma is not an accounting document. It shouldn't be entered in your sales ledger as money owed, and the buyer cannot use it to reclaim VAT or claim a tax deduction.
What a commercial invoice is
A commercial invoice — often just called the final invoice — is the binding request for payment. It carries a unique invoice number, is recorded in your accounts as a sale, and is the document the buyer pays against and uses for tax. In international shipping, the commercial invoice is also the formal record customs uses to assess duties.
When to use each
Use a proforma when a client needs a firm idea of cost before committing, when they need to raise a purchase order, or when goods crossing a border need pre-shipment documentation. Switch to a commercial invoice once the order is confirmed or the work delivered.
Proforma vs. commercial invoice
| Proforma invoice | Commercial invoice | |
|---|---|---|
| When it's issued | Before the sale, to confirm expected cost | After the sale, to demand payment |
| Invoice number | No fixed number needed | Unique, sequential number |
| In your ledger | Not recorded as a sale | Recorded as a sale |
| Valid for tax | No | Yes |
frequently asked
- Can a customer pay against a proforma invoice?
- They can choose to pay early on the strength of a proforma — it's common for deposits — but the proforma itself isn't a formal demand and isn't valid for tax. Once paid, you should issue a proper commercial invoice for your records and theirs.
- Does a proforma invoice need an invoice number?
- Not a sequential sales number, because it isn't recorded as a sale. Many businesses give it a reference and clearly mark it 'Proforma' so it's never confused with a final invoice that does need a unique number.
- Is a proforma the same as a quote?
- They're close. A quote is usually more informal, while a proforma is laid out like an invoice and often used where formal documentation is expected, such as customs or internal procurement. Neither is a binding demand for payment.
Published June 14, 2026 · Last updated June 16, 2026