A pro forma invoice contains information such as shipper's contact information, receiver's name and amount, relevant date, invoice number, item description, quantity and price. A pro forma invoice essentially serves as a sales quote, and the relevant parties do not book anything in their accounting systems until the transaction actually occurs.
The placement of the items on a pro forma invoice is similar to a standard invoice. The company name resides at the top of the pro forma invoice, with the relevant contact information beneath it. The issue date and expiration date communicate the time frame for both parties. Underneath the company name is the customer, recipient and recipient details, including name, address, phone number and email address.
The body of the pro forma invoice provides details about all items in the associated transaction, including item number, description, quantity, price and total amount. Any relevant taxes or shipping charges are important to include as well. It is also crucial to list any terms of sale or other notes.
Signatures of the parties and the signing date are usually found on a pro forma invoice. The document serves as a sales quote and does not impact accounts receivable or accounts payable. It is sometimes referred to as a preliminary invoice.