The document that's called a "pro forma invoice" often serves as a kind of marker for helping a buyer and a seller to be clear about the payment expected for a shipment of goods. The pro forma invoice can be sent ahead of the shipment to let the buyer see how the goods are valued. Knowing about some of the basic terms on a pro forma invoice helps business decision makers to deal with a wide range of transactions including international shipments.

Action Steps
The best contacts and resources to help you get it done

Template

A template is a sample of any business document that can be changed and specialized to make it relevant to a specific business transaction. Templates are very helpful for pro forma invoices to help business leaders approach the style and functionality they would like for these documents.

I recommend: Find templates of pro forma invoices and other documents at DocStoc, where business leaders can browse through samples of legal and business documents to get an idea of what they need to make for their shops.

Payment terms

Payment terms or terms of payment are often included on a pro forma invoice to clarify how the entire transaction will be done. Payment terms can include timelines or split payments as well as info on how the payments will be made.

I recommend: Find a wealth of information about pro forma invoice payment terms and more from this page at Global Expert Base.

Quotation

A quotation is basically a statement of what kind of pricing a buyer can expect. The pro forma invoice is often called a 'quotation in invoice form.'

I recommend: Find out about the quotation and the pro forma invoice at Unzo's Guide to Exporting. For more on formatting of quotations, try this page from Export Assistance.

Tariff classification number

This handy number is also included on a pro forma invoice. It helps define what kind of tariff is applicable to products being shipped across borders.

I recommend: Find out a whole lot about the tariff classification number and the Harmonized Tariff Schedule at Fedex.

Billing software

The kind of computer program known as 'billing software' can help business heads create pro forma invoices that work with their internal inventory systems and accounting practices.

I recommend: For more on billing software, check out Billing Manager from Intuit.

Total cost

The total cost for all of the shipped materials and units should be included on a pro forma invoice; the more prominent this item is, the less confusing the form will be to buyers.

I recommend: Look out for total cost (see page 4, number 11) and a whole lot of other factors for a pro forma invoice from pages like this FRED (Fast Resources for Enterprise Development) resource page.

For small businesses, the use of a pro forma invoice system can eliminate slow payments of completed orders. A pro forma invoice describes all shipped items, the number of units ordered, and the costs per item plus the total price of the shipment.

You can send the pro forma invoice ahead of the order or with the shipment to serve as verification of the contents. Customers will not make their payment from the pro forma invoice, but it supplies itemization of orders before payment is due. There are many options for incorporating pro forma invoice information into a businesses' shipment documentation. Consider the following:

1. Learn what information to include in your invoices;

2. Find a template for a pro forma invoice online;

3. Purchase software to customize pro forma information for your business.

Action Steps
The best contacts and resources to help you get it done

Find pro forma invoice information online

The Internet offers many examples of a pro forma invoice that can inform you on what to include and supply design ideas.

I recommend: Unz & Co. specializes in information and materials needed for international trade. The sample pro forma invoice on the company's site includes item description, price and terms of payment. Air Seven Seas is a freight transport company that also provides a sample invoice. This one is generic and includes instructions to help you tailor the form to your company's needs.

Download a template from a pro forma invoice provider

Templates allow you to input your businesses information in a pre-designed format. Saving the template on your hard drive will make it easy to create new invoices for each shipment.

I recommend: Docstoc is an online source of free documents for professionals in the legal and business fields and other areas. The documents are available in several formats, including MS Word and PDF. Microsoft Office Online is another option for free template downloads. Microsoft offers invoices in a variety of colors and styles in both Word and Excel.

Choose pro forma invoice software that fits the needs of your company

Invoice software options range from free online services to modestly priced programs that allow business owners to customize the layout of the invoice. Some programs even work with compatible bookkeeping software to integrate business functions.

I recommend: Business-in-a-Box offers free demos for all of the documents featured in its program. The software is compatible with both PC or Mac platforms. Billing Manager is free software from Intuit (QuickBooks) that allows you to create custom invoices, keep track of your customers, and monitor payments. While the company hopes using Bill Manager will entice you to purchase access to their QuickBooks Merchant Service software, it is not a requirement to use the invoice service.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Don't have time to manage your pro forma invoice list? Find an online provider that will send out invoices you create to your clients via e-mail or standard mail for a fee per invoice or monthly unlimited service rate.

When a company wants to provide great documentation on goods they are selling, whether the shipment is within U.S. borders or going abroad, a pro forma invoice can be a good idea. A pro forma invoice is a kind of "extraneous" invoice form that acts more as a marker for a shipment. It can include all of the information on a regular invoice, but it usually acts as a preamble to the final, stored invoice. A pro forma invoice may accompany a shipment, or it may be sent before the shipment ever leaves the sender.

When business leaders want to start using a pro forma invoice or find pro forma invoice models, the web can be a tool for figuring out what this document is and how to profit from its use. Readers can find resources on the pro forma invoice for beginners:

1. To show those new to the pro forma invoice document what it might look like and how it might be created for a variety of shipping ventures.

2. To detail the specific roles of various bits of info that buyers commonly see on a pro forma invoice and explain their importance.

3. To support business leaders in brainstorming any project such as a new product line that may generate changes in shipping and a new system that may include a pro forma invoice list method.

Action Steps
The best contacts and resources to help you get it done

Learn about the specific use of a pro forma invoice

A look at the definition reveals that a pro forma invoice is a type of invoice with critical data -- but how are these documents used to drive domestic and international trade? Take a quick look at some resources for beginners that will show what kind of business gets done with common pro forma invoice documents.

I recommend: How to Export - How to Import has some interesting and informative tips about how a pro forma invoice provider may use this document. Get more at Export Help.

See what's included in a pro forma invoice

Another basic element for beginners is to decide what information will be added to a pro forma invoice. Identification of sending and receiving parties is obvious, but other elements, like tax information or source info, are up to the judgment of the sender.

I recommend: Get tips on including useful information in a pro forma invoice at this info page from Alibaba, an international merchant site. See more at this page from Export Assistance, including a kind of pro forma invoice directory guide or check list.

Find out when to send a pro forma invoice

There's also the issue of how and when to send this document to buyers. There are different conventions for sending the pro forma invoice, but some websites detail some of the common methods.

I recommend: See tips on timing and more pro forma invoice information at this blog page. Or get more tips from pages like this one on exporting from South Africa at MBendi.