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A proforma invoice is a preliminary bill shared with a buyer before goods or services are delivered. It outlines the expected products, quantities, prices, taxes, and payment terms, helping buyers understand costs before confirming an order.
Unlike a final invoice, a proforma invoice is not used for accounting or tax purposes. It serves as an estimate and agreement document before the actual sale takes place.
Clearly communicate pricing, taxes, discounts, and delivery terms before processing an order.
Customers can review costs and approve purchases faster.
Avoid misunderstandings by documenting expected charges upfront.
Request deposits or partial payments before fulfilling an order.
Present customers with a structured and branded document.
Create and share a professional proforma invoice in just a few clicks.
Enter your business and customer details.
Add products or services, quantities, rates, taxes, and discounts.
Download or share your proforma invoice instantly.
| Feature | Proforma Invoice | Invoice |
|---|---|---|
| Purpose | Estimate before sale | Final billing document |
| Payment Request | Generally no | Yes |
| Accounting Entry | No | Yes |
| GST Liability | No | Yes |
| Order Confirmation | Yes | Not primary purpose |
| Legally Binding | Usually No | Yes |
TallyPrime is a complete business management software to manage your business easily, faster, and efficiently. Access to complete features, from billing to insightful reports.
Accounting and Billing | Inventory Management | Insightful Business reports | GST Returns and reconciliation | Connected e-invoice & e-way bill solution | Cash and Credit Management | Security and user management