Guide · Documents
Proforma invoice vs invoice: what's the difference?
One confirms what will happen. The other asks to be paid for what already happened. Sending the wrong one is how orders stall at customs and books get messy.
Side by side
| Proforma invoice | Invoice | |
|---|---|---|
| Purpose | Confirm an order and its terms | Request payment |
| Timing | Before shipment or work starts | After delivery |
| Creates a receivable | No | Yes |
| Booked as a sale | No | Yes |
| Numbering | Its own series, e.g. PI-0001 | Its own series, e.g. BC-0001 |
When to send a proforma
- An international buyer needs a document before wiring money.
- You require a deposit before starting production.
- The buyer's approval process needs a written price and specification.
- Customs or a freight forwarder needs the declared value before shipment.
When to send the invoice
- The goods shipped, or the work was delivered and accepted.
- You are owed the balance after a deposit.
- A retainer period ended and it is time to bill the hours.
Three mistakes
Using the proforma as the invoice. If the client's AP team files the proforma, nobody pays. Send the real invoice after delivery.
Reusing the same number. A proforma and an invoice are different documents. Give each its own series so the audit trail does not collide.
Forgetting the tax line. Even a proforma should show the tax that will apply, or the buyer budgets the wrong amount and disputes the invoice later.