Contract Proforma Invoice Template in Excel
This is a contract proforma invoice; a priced binding-looking quotation you can send to a buyer before the goods ship.
Preview
About the template
A proforma invoice is a priced offer sent to a buyer before goods are shipped and before any payment is due. It is not a demand for payment and it does not go into your sales ledger. Its job is to tell the buyer, and usually the buyer's bank and customs broker, exactly what is being sold, what it will cost, how it will travel and what it weighs, so that an import licence can be applied for, a letter of credit can be opened, or an internal purchase order can be approved.
A contract proforma goes one step further than a plain quotation, because the terms it states are the terms the eventual sale will be made on.
This template is the export version of that document. Alongside the usual billing and item details, it carries a shipment information block covering the purchase order, the letter of credit reference, the currency, the payment terms, the mode of transport, the Incoterm, the number of packages, the gross and net weights, the carrier and the estimated ship date. Those are the fields a freight forwarder or a bank will look for, and a proforma missing them tends to come back with questions rather than an approval.
What this contract proforma invoice includes
A seller block for your company name, address, website, email and phone. Separate Bill To and Ship To blocks, because on an export sale the buyer and the delivery point are often different companies in different cities. A reference panel with the page number, the date, the date of expiry, the estimate number and your customer identifier. A shipment information band covering the purchase order number and date, the letter of credit reference, the currency, the payment terms, the estimated ship date, the mode of transport, the transportation terms, the number of packages, the estimated gross and net weights and the carrier. An item table with the item code, a description, the unit, the quantity, the unit price, a taxable marker and a line total that calculates itself. A totals ladder running from subtotal through the discounted subtotal, the amount subject to sales tax, the tax rate, the total tax, shipping and handling, insurance and two free lines for anything else, ending in the quote total. A notes area for the terms of sale, and a signed declaration at the foot.
How to create contract proforma invoice
Start with your own details and the buyer, then fill in the Ship To block if the goods are going somewhere other than the billing address.
Set the date and, importantly, the date of expiry, since a proforma is an offer and your prices should not be open forever.
Work through the shipment block next, because that is the part the buyer's bank and broker will read first.
Then add one row per product, giving the item code, description, unit, quantity and unit price, and marking each row Y or N for whether it attracts sales tax.
The line totals and the subtotal are calculated for you. Enter the discounted subtotal, the amount subject to tax and your tax rate, then add freight, insurance and any other charges. The quote total adds those to the discounted subtotal.
Write the terms of sale into the notes area, add the name of whoever is signing.
Download the workbook, print it and sign the declaration before it travels with the shipping documents.
Who this contract proforma invoice is for
Exporters and manufacturers selling across borders, who need a document a buyer can take to a bank. Trading companies and distributors quoting for a container load. Small businesses shipping internationally for the first time, who have been asked for a proforma and are not sure what it has to contain. Freight forwarders and customs brokers preparing paperwork on a client's behalf.
It suits any sale where the buyer needs a priced document before the goods move, which covers most international trade and a good deal of large domestic contract work too.
Note
A proforma invoice is not a tax invoice and should not be used to claim or reclaim tax. Once the goods ship, issue a commercial invoice quoting this proforma's estimate number so the two can be matched. Weights and ship dates are estimates by definition, so say so in your terms of sale and confirm them on the commercial invoice. Where the sale is zero rated for export, enter 0 in both the amount subject to sales tax and the tax rate.
- Professional formatting and layout
- Easy customization with guided questions
- Multiple export formats: xlsx, pdf
- Legally reviewed and compliant
- Instant download after generation
What is a proforma invoice, and how is it different from a normal invoice?
A proforma invoice is a priced offer sent before the goods ship and before payment is due. A commercial invoice is a demand for payment issued once they have shipped. The proforma tells the buyer what the deal will look like so they can raise a purchase order, apply for an import licence or open a letter of credit. Because it is not a demand for payment, it does not go into your sales ledger and it cannot be used to claim or reclaim tax.
Is a proforma invoice legally binding?
On its own it is usually treated as an offer rather than a contract, but it stops being merely indicative once the buyer accepts it or a letter of credit is opened against it. That is why this version is called a contract proforma: the prices, the Incoterm, the payment terms and the validity date on it are the terms the sale will be made on. Set the date of expiry deliberately, because that is what limits how long you are held to those prices.
Why does it ask for gross and net weight?
Because customs and the carrier need both. Net weight is the goods alone and is what duty is often assessed on; gross weight includes the packaging and pallets and is what the carrier charges and plans capacity against. Give both with the unit written out, since a number on its own will be read as kilograms by one party and pounds by another. They are estimates at proforma stage, so confirm them on the commercial invoice.
What should I put in Transportation Terms?
The Incoterm (International Commercial Term) the sale is made on, such as FOB, CIF or EXW. It is the single most consequential field on the document, because it decides who pays the freight, who insures the goods and at exactly which point the risk passes from you to the buyer. If you enter CIF you are agreeing to pay freight and insurance to the named destination, so the shipping and insurance lines in the totals should reflect that.
How do I handle a zero rated export?
Enter 0 in the amount subject to sales tax and 0 as the tax rate, then say in the terms of sale that the supply is zero rated for export and note the legal basis if your authority requires it. Leave the taxable marker on each item row as N. The total tax line will show zero and the quote total will be the discounted subtotal plus freight, insurance and any other charges.
Can I add more than eleven item rows?
Yes. The item table is a repeating group, so it grows to fit however many rows you add, and the subtotal formula stretches with it. Very long lists usually read better grouped into fewer named lines, with a packing list attached separately, because a proforma running to several pages is harder for a bank to check against a letter of credit.
Do I need to sign it?
Usually yes. The declaration at the foot states that the information is true and correct, and many customs authorities and banks expect a signature and a company stamp on a proforma before they will act on it. Enter the name and role of whoever is signing so the printed sheet shows who stood behind the figures, then sign it by hand before it goes with the shipping documents.