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How to make a proforma invoice

A proforma invoice looks like an invoice but is an offer: the customer uses it to approve the purchase or pay an advance. When the goods go, you issue the real tax invoice from it.

Step by step

1. Proforma invoice details. Check the number and Date, set Valid until, and the customer's Enquiry reference.
2. Bill to and Place of supply. As on an invoice: it decides CGST + SGST or IGST.
3. Items and GST. Leave Show GST on this document ticked so the customer sees the full amount to pay.
4. Bank and UPI. Your bank details and UPI ID (saved with your business under Logo, signature and bank details) print for the advance.
5. Save, share, then Make invoice. When the order is final, press Make invoice: the billing maker opens with everything filled.

Worked example

A school orders 40 benches at ₹2,500 + 18% GST. Proforma PI/26-27/004: ₹1,00,000 + ₹18,000 = ₹1,18,000, "50% advance with order". The school pays ₹59,000; record it in the App as Money received without ticking a bill (an advance). On delivery press Make invoice: the advance settles half of the invoice.

Rules and dates

Common mistakes and how to fix them

• Entering a proforma in GST returns. Only the tax invoice goes into GSTR-1.
• Promising GST-free prices to a registered buyer. Show GST so the buyer pays the right advance.

Related help

All help on Proforma · Help for the Nivesh Sahayak App