How to Create a Proforma Invoice in QuickBooks?

Among several features that QuickBooks offers, Proforma Invoice is considered one of the key accounting features that QuickBooks offers. QuickBooks […]

Among several features that QuickBooks offers, Proforma Invoice is considered one of the key accounting features that QuickBooks offers. QuickBooks Proforma invoices can be accessed to meet several goals like sending to customers, shipping purposes, and also monitoring the accounts.

QuickBooks Proforma Invoice is a type of document that can be access as proof of purchase and sales. A Proforma Invoice comprises all the information about a product along with the payment process, where payment will be done or is already done. It can also be termed as a preliminary bill, which signifies that it is not real, however, it can be treated as a real one.

In today’s article, we will talk about the different categories of proforma invoices, together with the process of preparing a proforma invoice. We will elaborate on the process in detail, making it convenient for you to comprehend. Hence, make sure you read the complete blog.

Now let us learn in detail what a Proforma Invoice in QuickBooks is all about.

What is a Proforma Invoice in QuickBooks?

In simple terms, a Proforma Invoice is an invoice that can be used to request payment from a buyer or customer. A Proforma Invoice includes a breakdown of the total amount payable as well as a description of the products. Usually, a Proforma Invoice is issued after payment has been received, negating the need for a payment request.

QuickBooks lacks the particular features to prepare Proforma Invoices directly, however, by accessing the templates from Microsoft Word and Microsoft Excel, it is possible to prepare Proforma Invoices in QuickBooks.

What does a Proforma Invoice Look like?

A Proforma Invoice generally comprises the details mentioned below:

  • Your contact information
  • The cost of the goods and services you offer
  • Relevant shipping costs
  • Issuing date
  • An elaborative description of the services and goods you offer
  • Sales tax and other fees or taxes that are applicable
  • The overall amount which is due

What is the objective of a Proforma Invoice?

A Proforma Invoice can be a crucial addition to the sales process of a business organization. It offers customers a decent cost-of-sale estimate and cuts down the possibility of experiencing unwanted charges, cutting down the payment dispute risk when the commercial invoices are generated.

Some instances where Proforma Invoices are generally used comprise:

  • When you lack all the information to generate a commercial invoice
  • When you are stating the value of the goods to customs while exporting to any foreign country
  • When you require something that can work as a formal payment request when any receiver wants to pay in advance

What are the Different Categories of a Proforma Invoice?

QuickBooks offers you with a plethora of Proforma Invoices, some of which are stated below:

For Shipping

This kind of Proforma Invoice is a type of business invoice. One important thing one needs to remember is that such Proforma Invoices do not have any details about VATs and taxes. However, both sides can access it to analyze the real cost of the products and services.

For Customers

The kind of Proforma Invoice works as a written authentication to the customer end from the seller end which guarantees the delivery of the product. It comprises the complete description of the payment which assists both sides in monitoring the payment.

What are the Important Points to Remember Before Preparing a Proforma Invoice?

Here are the three crucial points that you need to remember when you are preparing a Proforma Invoice:

  • Proforma Invoices are saved only as accounts receivable. It just means you can prepare it to monitor the payments which you are going to acquire.
  • It must be used as a substitute for a particular invoice. In simple words, a Proforma Invoice should not be assumed as the original invoice and also the customer should not make any payment depending on it.
  • Another important thing one needs to remember is that Proforma Invoice and QuickBooks Payroll are not the same. Hence, as per a seller, you are not require to make any payment to the client.

What are the Primary differences Between a Proforma Invoice and an Invoice?

There are many differences between a Proforma Invoice and a standard commercial invoice, some of which are mentioned in the table below:

Key DifferencesProforma InvoiceCommercial Invoice
Time of issueProvided to customers prior to placing any order.Provided to customers once the goods or services are received.
PurposeTo assist your customer to finalize whether to place an order or not.To notify the buyer about the amount due and how to complete the payment.
Details addedContact information, a description of the goods and services, date of issue, and the amount which is due. It needs an invoice number and must be clearly labeled as ‘proforma’.An invoice number, issue date, means of payment, contact details, amount payable, a billing address, plus the terms and conditions.
AccountingProforma invoices are of no help for accounting purposes.A commercial invoice must be recorded as accounts payable and then filed for reference.

How to Create the Proforma Invoice in QuickBooks?

Here is the step-by-step procedure that you are required to implement if you want to prepare a Proforma Invoice in QuickBooks:

Step 1: On the right side of your screen, you will be able to witness the gear icon.

Step 2: Hit the Gear icon. A window will open where you will be required to search for a custom-form style and then choose the new option.

Step 3: You will not need to press on the new style drop-down menu and then you will need to select the estimate option.

Step 4: Next, you need to press the option, Content tab.

Step 5: Now you will need to hit the Edit option and then choose the Make Default option.

Step 6: Now you will be given the option to edit the name of the estimate. If you want, you can alter or keep it as it is.

Step 7: Now, you will need to save the change. Next, exit the screen.

How to Create Multiple Invoices in QuickBooks?

If you wish to create several invoices in QuickBooks, you can implement the steps given below:

Step 1: First, you need to hit the Create Option and then choose the Multiple Invoice option.

Step 2: Post this you will need to press on the Plus icon.

Step 3: Now, you can prepare several invoices.

Step 4: Now, you need to press on the information column to add any information you wish.

Step 5: You can also prepare the invoice if you want. You need to go to the menu and then choose the option to erase the invoice.

How to Add a Logo to a Proforma Invoice?

Here are the steps to add a logo in a Proforma Invoice:

For Application

Step 1: You need to press on the Settings option and then choose the option, Work Info.

Step 2: Now you need to press on the Edit option and then you need to choose the image and upload it in the logo option.

Step 3: Now save the settings.

For Website

Step 1: First, you need to navigate to the invoice section and then press on the option to change the invoice.

Step 2: Post this, you need to press on the option for, Edit information.

Step 3: Finally, you need to upload the image and then save it.

How to Repair Payment if they are Assisted with the Incorrect Invoice?

Here are some of the steps that you must implement if you need to change the payment that has been applied by you on a particular invoice:

Step 1: First, you need to press on the option, Create. Now navigate to the Other option and select the Journal Entry option.

Step 2: Post this, you need to enter some details like the amount acquired, customer details, and the amount to be paid.

Step 3: Now you need to enter the same details again, but do not add the customer name and then save it.

How to Duplicate a Proforma Invoice in QuickBooks?

There are a number of reasons why you might want to duplicate a specific Proforma Invoice in the QuickBooks program. Proceeding with this, you may choose which clients you wish to send the Proforma Invoice to. The window for multiple invoices will open. You are able to review and make changes to your clients’ Proforma Invoices. The next step is to save the changes you have made.

Step 1: Select the Customers to whom you wish to send the Proforma Invoice.

Step 2: Click Next.

Step 3: In the screen for Multiple Invoices, you will be able to witness the invoice for all the customers. It is possible to add and edit the invoices.

Step 4: Make sure the invoices have been saved.

Note: A Proforma Invoice that you choose to replicate will have duplicate lines throughout. If you have not set any choices regarding taxes or terms that are special to a customer, then creating several Proforma Invoices is not necessary.

We hope you now understand what a QuickBooks Proforma Invoice is. We think the above-mentioned procedure will assist you in creating the Proforma Invoice in QuickBooks.

Frequently Asked Questions

What are the key Differences Between an Estimate and Proforma Invoice?

A Proforma Invoice and an estimate are similar to each other more than they are different from one another. Proforma Invoices and estimates are used at similar stages of the sales process to give your customer details about the transaction.

Is Proforma Invoice a Legal obligation?

Although it is an essential business document, a Proforma Invoice is not legally binding. Usually, a Proforma Invoice offers a pricing estimate for the goods or services that a company offers. However, it cannot, be used as proof of a completed transaction because it is not a legal record of the sale.

How to send a Proforma Invoice?

Proforma Invoices can be distributed in the same manner as ordinary invoices. These bills can normally be printed out and mailed, or they can be sent electronically via email.

Is it Possible to make Payments on a Proforma Invoice?

You cannot make payments on a Proforma Invoice because it is only an estimate of sale and not a precise transaction. To start the payment procedure, you must get a sales invoice or purchase order.

Is it Possible to cancel a Proforma Invoice?

Proforma Invoices are used to estimate the cost of transactions involving products or services, and they are not required to be canceled because they aren’t bills of sale. You don’t have to worry about canceling your order if you don’t proceed with a sale and don’t receive a purchase order or sales invoice.

close btn

Get Your Case Study

Call Now+1-800-596-0806