Proforma Invoice Template
We have created a free Excel pro forma invoice template for download. All our templates are free and easy to use. Before we get to the template, we will look at what a proforma invoice is and its VAT implications.
A proforma invoice differs from a standard sales invoice issued to a customer for several reasons.
What is a Proforma Invoice
A pro forma invoice is a document issued to a customer for goods or services before they are supplied, it is a preliminary bill of sale. There are a few reasons you may decide to issue proforma invoices.
- The customer is new, and you require payment in advance
- It is a large order, and you require partial payment up front
- The customer is a bad payer, and therefore, credit is no longer granted
- To reserve goods to cover an order
A proforma invoice is a payment request, and once the customer makes the payment for the goods or services provided, you should issue a VAT invoice.
Proforma Invoice VAT
One thing to note about a proforma invoice is that it is not a VAT invoice. Mark the document clearly with the wording “This is not a VAT invoice.”
Can you claim VAT on a Proforma Invoice?
The tax point on an invoice is when a transaction occurs. The date might be when the goods are supplied or collected, or the service is complete. The tax point can also be the date that the payment is received. Below are a couple of examples:
- A pro forma invoice was issued on 15th January, and payment was received on 20th February. The tax point is 20th February, and a tax invoice is issued.
- A pro forma invoice is issued on 15th January, and the goods are supplied on 1st February. The tax point is 1st February.
Once a transaction takes place, a VAT invoice should be issued and include the tax date. You should not delay the invoice until payment is received, as it might be several months away.
You must issue VAT invoices within 30 days of the date the transaction took place.
It is also essential to reclaim VAT in the correct period and on the date the transaction took place as a customer.
If a business uses the VAT cash accounting scheme, it can only claim the VAT when money is paid or received.
How to create a ProForma Invoice
There are a couple of options to create a proforma invoice for a customer:
Accounting Software
Accounting software like Sage UK has a built-in feature. When you select sales invoice, there is a drop-down which also has pro-forma. It can then easily be converted to an invoice once paid or the order is completed.
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Free Excel Proforma Invoice Template
Our free UK Excel Proforma invoice template is available for download at the end of this article. It lets you set up a template that includes your business information and logo. The template will automatically calculate the VAT.
How to use the Free Proforma Invoice Template
Follow these instructions to get started with our free proforma invoice template:
- Simply download the template at the bottom of this article.
- Insert your company logo, if you have one, or delete the message.
- Enter your business name, address, and, at the bottom, complete the payments section.
- Save the template; it will serve as a template for future pro forma invoices.
- If you are using autosave in Excel, save another copy with a different filename.
- Enter the customer name, address, and order reference, if provided.
- Enter the date of the invoice. The invoice number should not be part of your standard invoice numbering, but you may want to assign it a separate sequence for reference if you issue many proformas. You can also leave it blank.
- You can now enter the details of the products or services required.
- The template calculates the totals for you.
- Enter the payment due by date as agreed with the payment terms or leave it blank.
The pro forma invoice is ready to be sent to your customer.
Do not forget that once payment is received or goods or services are delivered to issue a VAT invoice.
Proforma Invoice Template Example
Below is an example of our proforma invoice template:
As you can see from the above example, it is for bookkeeping services before the work is carried out. The tax point will be either when the work is carried out or when payment is made.
Advantages of Using Accounting Software
When it comes to issuing pro forma invoices, many businesses still rely on Excel pro forma invoice templates. However, there are several advantages to using accounting software instead.
- The software can produce a professional proforma invoice and save the details in the accounting package.
- It’s much easier to produce a final invoice when all the information is already entered into the system. This can save considerable time and hassle when billing customers.
- Accounting software can give pro forma invoices a more professional appearance, impressing clients and helping win new business.
- You can automate other accounting processes, including payment reminders, saving you time on your bookkeeping.
Accounting software is a cleaner, simpler way to issue pro forma invoices and offers several benefits over Excel templates.
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Other Bookkeeping Excel Free Templates
If you are looking for other invoice templates, we also have a sales invoice template available for when the tax point is reached.
If you are looking for other bookkeeping templates for your business, take a look at our complete section.
Free Pro Forma Invoice Template Download
By downloading our proforma invoice template, you agree to our licence agreement, allowing you to use the templates for your own personal or business use only. You may not share, distribute, or resell the templates to anyone else in any way.
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