If you have ever been asked for a “proforma” and were not quite sure how it differs from a normal invoice, you are not alone. The two look similar but do very different jobs. Here is the difference in plain terms.
What a commercial invoice is
A commercial invoice, the standard invoice, is a formal demand for payment. It is issued after goods or services are agreed or delivered, it records a real transaction, and it is the document your accounts and tax records are built on. When you send an invoice, you are saying: this is owed, please pay it.
What a proforma invoice is
A proforma invoice is issued before the sale is finalised. It is a good-faith quote in invoice form: it shows the buyer what the goods or services will cost, including estimated taxes and shipping, so they can approve the purchase, arrange payment, or handle paperwork like import approvals. A proforma is not a demand for payment and does not go into your accounts as a sale.
The key differences at a glance
- Timing: a proforma comes before the sale is confirmed; a commercial invoice comes after.
- Purpose: a proforma helps the buyer decide or prepare; a commercial invoice requests payment.
- Accounting: a proforma is not recorded as revenue; a commercial invoice is.
- Binding: a proforma is an estimate that can change; a commercial invoice is the final amount owed.
When you would use each
Use a proforma when a client needs a formal price before committing, when goods are crossing a border and customs needs a value, or when a buyer needs a document to release payment internally.
Use a commercial invoice once the deal is done and you want to be paid, and for your own records and tax.
Making both easy
A good invoicing tool lets you issue a proforma, then convert it into a commercial invoice once the sale is confirmed, without retyping anything. Billbooks supports both, along with quotes, recurring invoices, and reminders. See proforma invoices and invoicing and quotes, or start with the free invoice generator.
The short version
- A proforma is a pre-sale estimate in invoice form, not a payment demand and not recorded as revenue.
- A commercial invoice is the real thing: issued after the sale, it requests payment and goes into your books.
- The best tools let you turn one into the other in a click.
