The proforma invoice is the first official document in most export deals: the reference the buyer receives before confirming the order, opening a letter of credit, or obtaining an import permit. A well-built proforma aligns every later step (L/C, shipment, customs); an incomplete one triggers a correction loop. This guide explains what a proforma is, how it differs from a commercial invoice, its required fields, and a ready template structure.
Proforma invoice: an official-style offer document given before the sale, showing the goods, price, and delivery/payment terms. It creates no accounting entry and does not replace the official invoice; its purpose is to be a reference for order confirmation, L/C opening, and import permits.
Proforma versus commercial invoice
A proforma is a pre-sale offer and is not booked. A commercial invoice is the definitive document issued with the shipment, the basis for payment and customs. In export the document title is usually COMMERCIAL INVOICE; a proforma is issued separately as PROFORMA INVOICE and is distinct from the domestic/official e-invoice too.
Required fields and template structure
A good proforma includes these blocks in full:
- Header: PROFORMA INVOICE wording, proforma number, issue date, validity period.
- Parties: Seller (exporter: name, address, tax no/EORI), buyer (importer), and ship-to (consignee) if needed.
- Line items: Row, product description, GTIP/HS code, quantity and unit, unit price, line amount.
- Totals: Subtotal, freight/insurance per the Incoterm, grand total, and currency (USD/EUR, etc.).
- Terms: Delivery terms (Incoterms 2020) and place, payment terms, delivery time, origin, packaging, and gross/net weight.
- Extra: Bank details if needed (L/C/wire), notes, signature, and stamp.
Always state the currency and the Incoterm place clearly (for example FOB Izmir, CIF Hamburg). The L/C is opened against these lines; any ambiguity comes back later as a discrepancy.
From the L/C and bank perspective
The importer usually opens the L/C based on the proforma: goods description, amount, Incoterm, port of loading/discharge, delivery time. So the proforma and the opened L/C must match exactly; otherwise you face an L/C discrepancy and payment delay at the document stage.
Common mistakes
A missing/wrong Incoterm, currency ambiguity, no GTIP code, no validity period, missing buyer/delivery details, and a mismatch between unit and total amounts are the most common mistakes. Each delays the order and creates a correction loop at the L/C or customs stage.
Generating the proforma from a system
Filling a proforma by hand in a template file every time means dozens of versions and inconsistencies over the years. In a trade operations layer like Sighthem, the proforma is generated from one form: multi-currency and Incoterms ready, GTIP from the product card, a bilingual TR/EN PDF in one click, optional manager approval, and the same record linked to the order, shipment, and L/C. That guarantees consistency between the proforma and later documents.
Frequently asked questions
What is a proforma invoice?
A proforma invoice is an official-style offer document given to the buyer before the sale, showing the goods description, quantity, price, and delivery and payment terms. It creates no accounting entry and does not replace the official invoice; its purpose is to serve as a reference for the buyer to confirm the order, open a letter of credit, or obtain an import permit.
What is the difference between a proforma and a commercial invoice?
A proforma is a pre-sale offer document and is not booked. A commercial invoice is the definitive document issued with the shipment, the basis for payment and customs. In export the document title is usually COMMERCIAL INVOICE; a proforma is issued separately as PROFORMA INVOICE.
Which fields are required on a proforma invoice?
Title (PROFORMA INVOICE), proforma number and date, validity; seller and buyer details; goods description, GTIP/HS code, quantity, unit price, and amount; delivery terms (Incoterms) and place; currency; payment terms; origin; packaging and weight; and bank details if needed. Complete, consistent fields make the next steps (L/C, customs) smooth.
Why does a proforma invoice matter for a letter of credit?
The importer often opens the L/C based on the information on the proforma: goods description, amount, Incoterm, port of loading/discharge, and delivery time. A mismatch between the proforma and the opened L/C comes back later as a discrepancy and payment delay at the document stage. So the proforma should be set up correctly from the start.
What are the most common proforma mistakes?
A missing or wrong Incoterm, currency ambiguity, no GTIP code, no validity period, missing buyer/delivery details, and a mismatch between unit and total amounts are the most common mistakes. They delay the order and trigger a correction loop at the L/C or customs stage.