Decoding: Creation of Proforma Invoice in accounting software


The main responsibility of a Proforma invoice is to provide a bill that contains the correct details of goods or services, to the buyers before the delivery of the goods. The invoice has detailed information about the items that are purchased by the buyer and contains all crucial information related to it such as shipping weight or charges of the transport. The proforma invoice also acts as a commitment where the dealer mentions the date and time by which the items will be delivered to the buyer. This invoice is very helpful for businesses to run smoothly as it helps the seller obtain the correct amount for the goods and the buyers also get a chance to make any modifications before the goods are shipped.

The proforma invoice also saves the buyer from spending any extra cost related to the product or shipment, as all the details are mentioned in the invoice and the buyer is supposed to pay that amount only. A normal invoice is only concerned with the total amount of the products, a proforma invoice not only deals with the amount but states the details regarding shipment as well.

Details To Be Mentioned In A Proforma Invoice

The creation of a proforma invoice is similar to any regular bill. There is no fixed format related to the creation of such an invoice in an accounting software. However, the word “proforma” should be mentioned as it indicates that the bill is not final and modifications can be made. It is also crucial to provide the correct details if you want no mistakes to take place later on during shipment. Here are a few basic details that needs to be mentioned while creating proforma invoice in accounting software:

  • Provide the correct contact details, the name of the seller and the business name.
  • Mention the name of the customer, their contact details and business name.
  • Add your customized logo or brand name.
  • Provide an invoice number that is unique along with the invoice date and payment date.
  • Make an accurate list of all the goods and services that are provided to the buyer along with the price details and description of each item.
  • At the bottom of the invoice template, mention the total amount of all the items.
  • Add the terms of the payments and any additional information that you might find relevant.

These are the general details that the supplier needs to include in order to ensure the correct creation of a proforma invoice.

Key Roles Of A Proforma Invoice

Here are a few points mentioned that can help to understand the role of a proforma invoice and how it is beneficial for the businesses:

Damaged Items

In case the buyer receives damaged goods, with the help of a proforma invoice, he can demand the required adjustments. After receiving the correct products, he can return the invoice and obtain a final sales invoice.

If Customer Wants To Change Any Order

The proforma invoice is beneficial if the customer wants to make any changes in the order after delivery of the products. He can either credit or raise his initial invoice by making the necessary revisions. After making changes in the invoice according to the requirements, the buyer can convert it to a final sales invoice.

There are a lot of accounting softwares that can be used by businesses to create a proforma invoice. To help the businesses in creating an error-free proforma invoice, can provide assistance. They help in creating these types of invoices easily by providing templates. You can also know more about the importance of a proforma invoice in businesses. This invoice is beneficial for both the business and the buyer as it helps to fulfill all their demands.

Howard Fritz
My name is Howard Fritz. I'm a full-time blogger for who loves to share finance & business news. In my free time, I love to learn, read, and travel.

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