A
proforma invoice in export is a preliminary invoice issued by the exporter before the transaction is finalised.
It is commonly used to show:
- what goods or services are being offered
- how much the buyer is expected to pay
- which currency will be used
- how and when payment should be made
- how the goods will be shipped
- which party is responsible for freight, insurance, and other costs
A proforma invoice is typically used before the final commercial invoice, especially when the buyer needs to confirm pricing and terms or arrange an advance payment before the order is finalised.
A good
export proforma invoice format should contain the following details:
| Field | What to include |
|---|
| Document title | Clearly write PROFORMA INVOICE |
| Proforma invoice number | A unique reference for tracking |
| Issue date | Date the document is created |
| Validity | How long the quoted terms remain valid |
| Seller details | Business name, address, contact details |
| Buyer details | Legal name, address, country |
| GSTIN / IEC | Where relevant |
| Product description | Clear details of the goods or services |
| HS/HSN code | Where applicable for goods |
| Quantity | Number of units |
| Unit price | Price per unit |
| Currency | USD, EUR, GBP, INR, etc. |
| Total value | Subtotal plus applicable charges |
| Incoterm | Such as FOB, CIF, FCA, or DDP |
| Shipping details | Port, destination, or estimated dispatch where relevant |
| Payment terms | Advance, balance, due date |
| Payment details | Bank or collection instructions |
Step 1: Add the document header
Start with:
PROFORMA INVOICEThen add:
- invoice number
- issue date
- validity date
Step 2: Add seller and buyer details
Include the legal names, addresses, country, and contact details of both parties.
Step 3: Add product or service details
Use a simple table with the headers as mentioned below and add the necessary details:
| Description | HS Code | Quantity | Unit Price | Amount |
|---|
Step 4: Add currency and Incoterms
Always state the currency clearly.
For goods exports, also include the agreed Incoterm and named location.
For example:
FOB Nhava Sheva, Incoterms 2020is clearer than simply writing
FOB.
Step 5: Add payment terms
Specify:
- advance amount
- balance due
- due date
- payment method
- payment instructions
For example:
30% advance, 70% before shipmentStep 6: Review and export as PDF
Check the calculations, spelling, buyer details, currency, and payment instructions before sending the document.
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A proforma invoice and commercial invoice may look similar, but they are used at different stages.
| Proforma invoice | Commercial invoice |
|---|
| Issued before the transaction is finalised | Issued for the actual sale or shipment |
| Shows proposed terms | Shows final transaction details |
| Can be revised | Reflects the final agreed transaction |
| Often used for advance payment | Used for final billing and export documentation |
| Acts as a formal quotation | Acts as the final commercial record |
Yes.
A buyer can make full or partial advance payment using the information shown on the proforma invoice.
Once the actual supply takes place, the exporter should issue the appropriate final commercial invoice.
Avoid leaving out the
currency, using vague descriptions, omitting the Incoterm or named place, using unchecked HS codes, forgetting the validity period, or reusing outdated payment details.
For many exporters, the proforma invoice is the first document in the payment trail, so clear payment references matter.
The exporter should be able to identify which buyer paid, in which currency, against which transaction, and what amount was ultimately settled.
PayGlocal helps Indian businesses collect international payments and maintain clearer transaction and settlement records, making it easier to connect overseas payments with export invoices.
