What Should a Proforma Invoice Include? A Detailed Breakdown

If you're working with international clients or suppliers, you may have come across the term “proforma invoice.” But what’s a proforma invoice? Proforma invoice is a document you send before an official sale happens. It outlines the details of the transaction, such as the goods or services, their costs, and any terms both parties should know.

Knowing the meaning of proforma invoice is important, especially when dealing with international trade. It ensures that both the seller and the buyer clearly understand what’s being offered, the costs involved, and what to expect from the transaction.

In this blog, we’ll break down all the key elements that should be included in a proforma invoice. Whether it’s your first time preparing one or you’re looking to improve your current invoices, this guide will help.

Key elements of a Proforma Invoice

Each section of a proforma invoice plays a very important role. If even one part is missing, it can cause confusion, delays, or misunderstandings.

Here is a detailed explanation of each element your proforma invoice must have:

1. Seller’s Business Information

This section shows who is sending the invoice. It confirms the identity of your business and gives your client clear contact details.

You should mention:

• The full name of your company
• Your company’s official logo (if available)
• Your complete business address
• Phone number that the client can call
• A working business email address
• Your company website (optional, but it looks more professional)

This helps the client know exactly who they are dealing with. It also shows that your business is registered, reachable, and reliable. Make sure this section is clearly placed at the top of the document.

Also include the buyer’s company name and address, usually on the other side of the document or just below yours. This keeps records organized and helps avoid mix-ups.

2. Invoice Title, Number, and Key Dates

Your document must be clearly labeled as a proforma invoice. Do not write just “invoice,” because that refers to a different kind of document and may confuse the buyer or even cause accounting issues.

The top of the invoice should include:

 

 

• The title “Proforma Invoice” in bold or large font
• A unique invoice number (e.g., PI-104 or PRO-2305)
• The date the invoice is being issued
• The validity period of the offer (e.g., valid for 15 days or 30 days)

This part helps both parties keep track of when the invoice was created and how long the offer stands. Many businesses set an expiry period because prices, availability, or terms may change later. Make sure all this information is placed at the top, near the seller and buyer details.

3. Full Contact Details of Buyer and Seller

For smooth communication, full contact information must be included for both the sender (you) and the receiver (your client).

Write the following for each side:

• Full name of the main contact person
• Name of the company
• Full business address including city and postal code
• Business email
• Direct phone number

This makes communication easier and helps avoid delivery problems, especially for international shipments. If there is ever a delay or question, both parties will know exactly who to contact.

This section should be kept clean, accurate, and free of spelling errors or outdated phone numbers.

4. Clear Description of Products or Services

This section is one of the most important. It tells your client exactly what they’re going to receive.

Your list must be easy to read, well-organized, and complete. The more clear this part is, the faster the client can review and approve the invoice.

For every product or service, include:

• Name of the product or service
• A short, clear description if needed
• Quantity (number of units, hours, etc.)
• Price per unit or per service
• Total cost per line item
• Product code or reference number (if your business uses them)

For example:
 

Item Name	Description	Quantity	Unit Price	Total Price
Office Chairs	Black ergonomic chairs	20	$120	$2,400

 

This makes everything easy to understand. Your client doesn’t need to guess what they’re being charged for.

If you are offering services instead of goods, explain the service clearly. For example:

• Service: Website design package
• Duration: 30 days
• Total cost: $1,500

Adding detailed descriptions reduces follow-up questions and speeds up approval.

5. Currency Type and Estimated Total Cost

When dealing with international clients, always write the correct currency. It keeps things clear and avoids payment mistakes.

Be clear with your cost structure by showing:

• Subtotal (before any extra charges)
• Taxes or VAT (if it applies)
• Shipping or delivery fees (if you are charging them)
• Any handling or packaging charges
• The grand total

Always show the currency symbol or code, such as:

• USD – United States Dollar
• EUR – Euro
• GBP – British Pound
• CAD – Canadian Dollar

Your final total should be bold and clearly visible. If you offer payment in multiple currencies, mention both options side by side.

For example:

Total: USD $2,400 or EUR €2,210

Make sure this amount matches what is agreed upon with your client. Even a small error here can delay the deal.

6. Payment Terms and Method

This part clearly tells the buyer how and when to pay. It avoids confusion and sets clear expectations before any goods or services are delivered.

Your proforma invoice should include:

• Total amount to be paid
• Due date or payment timeline (for example, "Payment due within 15 days")
• Payment method you accept (such as bank transfer, credit card, PayPal, etc.)
• Bank account details or payment gateway link (if applicable)
• Advance payment terms (if you require part of the payment before delivery)

For international deals, always include:

• SWIFT code
• IBAN number
• Bank name and branch address

Clearly written payment terms help build trust. They also prevent delays or missed payments, especially when time zones or banking rules vary across countries.

7. Delivery Terms and Timeline

Buyers always want to know when and how they will receive their order. A complete proforma invoice includes delivery details to avoid misunderstandings later.

Mention these points:

• Estimated delivery date or timeline
• Delivery location or address
• Shipping terms (like FOB, CIF, EXW if applicable)
• Courier service or shipping company (if already selected)
• Tracking availability (if provided after dispatch)
   

For digital products or services, replace this with:

• “Delivery via email,”
• “Access link will be shared,”
• “Final files will be uploaded within 5 business days”

Giving this information up front helps clients plan better, and makes your business look responsible and well-organized.

8. Shipping and Handling Information

For physical goods, you must mention any shipping and handling charges. This helps the buyer understand the full cost of getting the product to them.

Include:

• Shipping charges
• Handling or packaging fees (if charged separately)
• Insurance (if any)
• Customs duties (if known or applicable)

Also, write whether the shipping cost is included in the total price or billed separately.

For example:

"Shipping charges of $50 will be added to the final invoice."
OR
"Shipping is included in the total price above."

This kind of clarity reduces friction and speeds up approvals.

9.  Additional Notes or Special Conditions

Sometimes, you might need to add more information that doesn't fit in the other sections.

This can include:

• Warranties or guarantees
• Return policies
• Discounts or promotional offers
• Instructions for the buyer
• Legal disclaimers
• Expiry of the offer
   

This section allows flexibility to explain any specific terms. It’s also a good place to thank your customer or highlight your support.

For example:

“Thank you for your interest in our services. If you have questions, please contact us directly at [email].”

Even one line like this adds a professional and personal touch.

10. Authorized Signature and Stamp 

A signature shows that your company has reviewed and approved all the information. It makes the document look complete and official.

Add:

• Name of the authorized person
• Signature
• Job title
• Company seal or stamp (if used)

Some countries and clients consider signed proforma invoices more trustworthy. It also protects both parties if there's a dispute later.

11. Internal Links or Attachments (If Needed)

This is especially useful if you're emailing the proforma invoice digitally or sharing it online.

You can attach or link to:

• Product brochures
• Business proposals
• Terms and conditions
• Official company profile
• Digital catalogs

Make sure the links work, and the files are updated. It helps the buyer get a full view of your offer and adds more value without needing to ask.

12. Contact for Questions or Clarifications

Always end your invoice with a clear point of contact.

Mention:

• Contact person’s name
• Email address
• Direct phone number
• Working hours or time zone (optional)

This shows that your business is accessible,  and easy to reach. If a client has questions, they know who to talk to right away, without delays.

Conclusion

Having a well-organized proforma invoice is essential for a clear and easy-to-understand transaction. By ensuring your invoice includes the right components and details, you can reduce misunderstandings and build trust with your clients. The meaning of proforma invoice lies in its ability to establish an early understanding of costs and expectations, especially for international deals.

FAQS

1. What details should be included in a proforma invoice?

A complete proforma invoice should include your business name, buyer’s details, invoice date, reference number, product or service descriptions, prices, payment terms, delivery details, and your company’s contact information.

2. Is it necessary to include payment terms in a proforma invoice?

Yes. Adding clear payment terms is very important. It helps the buyer know when and how to make the payment. It also avoids delays, confusion, or miscommunication later.

3. What’s the meaning of proforma invoice in trade?

The meaning of proforma invoice refers to its role as a preliminary document that gives buyers an idea of the total cost of a transaction before the sale. It's not a request for payment but an estimation or agreement on what’s being offered.

4. Should I mention taxes in a proforma invoice?

Yes, if taxes apply to the sale, you should mention them clearly. List any GST, VAT, or other applicable charges. This makes your invoice more understandable and easier for the buyer to review.

5. Can I include discounts in a proforma invoice?

Yes, you can add discounts or special offers in your proforma invoice. Just make sure they are clearly shown next to the item or in the final total breakdown.