What is a Proforma Invoice?

A Proforma Invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods and services. Unlike a Sales Invoice, it is a non-tax document that acts as a formal quotation or a "placeholder" to outline the estimated costs, quantities, and terms of a potential transaction.

In the UAE context, a proforma invoice does not represent a taxable supply and is not used for VAT reporting. Instead, it serves as a professional commitment from the seller to provide specific goods or services at a predetermined price.

When to Use This API

Use the Proforma Invoice API when:

• You need to provide a formal price estimate or quote for customer approval.

• The final details of a sale are still being finalized.

• A buyer requires a document to initiate internal purchase orders or secure import licenses.

• You want to prepare a transaction record that can later be converted into a final Sales Invoice.

How the Proforma Invoice API Works

When a proforma invoice is created or managed through the API:

• Drafting & Persistence: Documents can be saved as a Draft, allowing for iterative changes before the document is finalized and sent to the customer.

• Data Validation: Supplier and customer details are validated to ensure seamless conversion to a Tax Invoice later.

• Non-Accounting Impact: Creating a proforma does not affect your General Ledger or VAT records, keeping your financial reporting clean.

• Template Generation: A professional electronic document is generated for the buyer, clearly labeled as a "Proforma Invoice."

Document Status & Types

Proforma invoices are designed for flexibility, allowing businesses to stage their sales process.

Conversion Lifecycle

The Proforma Invoice is part of a broader document lifecycle. Once the buyer accepts the terms or the goods are delivered, the Proforma can be converted directly into a Standard Invoice, ensuring data consistency and reducing manual entry errors.