Proforma Invoice Generator

What is a proforma invoice?

A proforma invoice is a preliminary document sent to a buyer before goods are delivered or services are performed. Unlike a standard tax invoice, it is not a demand for payment - instead, it serves as a quote or estimate that outlines the expected costs, terms, and conditions of a transaction.

Proforma invoices are commonly used in international trade, for customs declarations, to secure financing, or simply to give a customer a detailed cost breakdown before they commit to a purchase. They help set expectations and reduce disputes by clearly documenting what will be supplied and at what price.

How to use this proforma invoice generator

1. Enter your business details including name, ABN, address, and contact information.
2. Add customer details - name, address, and email.
3. Set the invoice number, date, currency, and validity period.
4. Add line items with description, quantity, and unit price.
5. Toggle GST on or off and add payment terms or notes, then download as PDF.

ATO requirements: proforma invoice vs tax invoice

A proforma invoice is issued before a sale is finalised and is not legally binding for payment. A tax invoice is issued after goods or services are supplied and is a legal document required for GST purposes under Australian tax law. The ATO requires tax invoices to include the supplier's ABN, date of issue, description of items, GST amount, and the total price. A proforma invoice does not need to meet these requirements because it is not used for BAS reporting or GST credit claims. However, for international shipments from Australia, customs authorities may require a proforma invoice to assess duties and classify goods under the Harmonised Tariff Schedule. Australian exporters should include the country of origin, HS codes, and declared value in the proforma to avoid delays at the destination port.

When to use a proforma invoice in Australian business

Common scenarios include: quoting a customer before committing to a large order, providing documentation for a letter of credit application, giving an overseas buyer a cost estimate including freight and insurance (CIF), and securing internal budget approval before raising a formal purchase order. For industrial suppliers shipping heavy or custom-manufactured goods, the proforma serves as the definitive pre-sale document that both parties reference throughout the fulfilment process.

How AP automation streamlines the invoice lifecycle

A proforma invoice is the starting point, but the real work begins when the tax invoice arrives. Matching the final invoice to the original proforma, verifying quantities and prices, coding to the correct GL account, and routing for approval - all of this is manual effort that AP automation eliminates. Pulsify captures incoming invoices, matches them to purchase orders and proformas, and routes them for approval automatically.