It is normal practice to make custom pricing through sale based on specific requirements. For these companies issues estimates, Quotes, or proforma invoices. In this article, we are going to understand the procedure for   “how to create a proforma invoice in QuickBooks”.

A proforma invoice is sent to the customer before finalizing the deal with all details like how much goods and services cost, terms and conditions of sale, payments, and delivery details.

In QuickBooks, there is no separate proforma form or template. You will have to use the “Estimate” form template in QuickBooks. Just create a new estimate form and change its name to the proforma invoice.

For most of the company, it is a common practice to collect all the information about the deal and then craft a fabricated proposal, depending on the needs and circumstances of the business. Proforma is normally used for new clients where the business relationship doesn’t settle.

Invoice and Proforma invoice, how they differ?

The Proforma invoice is only made to create the sales, but the invoice is for the confirmation of the sale. When the customer requests before the placement of the order, the seller provides the Proforma invoice. And this is also true that a pro forma invoice is more casual than a true invoice. As it is basically for the customers who intend to buy before the order has been placed, it helps you to make a legal bond between you and your customers. However, the invoice is a legally binding bill. An invoice is made once the products have been delivered or your services have been rendered.

When should use a Proforma invoice

When you have to create a potential sale and an invoice to confirm that one has been executed you should use a proforma invoice. Sometimes before delivering your product or services, it is too important to create a provisional bill of sale. And it should include shipping cost, a precise price quote, and taxes. 

While shipping items internationally Proforma invoices are also used as they provide all the necessary details. And the shipment needs to clear customs before delivery. You can also modify your pro forma to create your final invoice report after your products or services have been received successfully.

Most common types of  invoice in Quickbooks

Here is the list of some common invoices that are used in QuickBooks

  • Standard Invoice
  • Commercial Invoice
  • Automatic Invoice
  • Pro-Forma Invoice
  • Progress Invoice
  • Credit Invoice 
  • Debit Invoice 
  • Mixed Invoice 
  • Prepaying Invoice

You should keep three important things in mind while creating or sending a proforma invoice.

  1. This is not an original invoice.
  2. It is not recorded for accounts receivable by the seller.
  3. It is not recorded as an account payable and payroll by the client.

In QuickBooks quotes, bids, and proposal all called by one name “Estimates”. You just have to mail these documents directly from your Quickbooks account then convert it into an invoice after completing the deal. So let’s start to:

Steps for Creating a proforma invoice in Quickbooks.

  • Go to the gear icon
  • Click custom form style to new style
  • Click on the estimate and select “content”
  • In a custom, form style select the edit option and then click to make default
  • Click on save changes and exit.

How to convert proforma into an invoice

If you are converting a proforma into an invoice, you must have the quality to choose which item will be carried into the invoice.

  • Click manage on the sales marketing tab in the quotes group
  • Double click on the quotes which you want to open
  • Click on the invoice button
  • Click yes to confirmation Question

Create invoice button” convert estimates into invoices.

Proforma invoice for shipping

The proforma invoice can use to abide by goods that are shipping internationally. They use custom agents to determine the value of goods being a ship. Although the document is helpful, it’s not a completed document and therefore does not list any VAT or taxes. Proforma invoices can be substituted by business invoices, although the latter is more preferred as it is a completed document. However, both documents do not require at the same time.

Proforma invoice for customers

The second use of Proforma invoice as a dedication by a provider to his clients to deliver goods or services. The proforma is regularly use providers for new clients where the business relationship does not settle. In this utilization, the proforma is similar to quotation or estimate.

Can we use proforma invoices as an expense related documents?

Proforma invoices are not a legal document, that can be used as evidence for company expenses. The proforma invoice puts before the payment and delivery of goods and services. This is only to show that the transaction happens.

How to create multiple invoices

QuickBooks online allows you to create multiple accounts and send them at the same time. By working on multiple invoices at the same time you can save you time.

  • Go to create an icon and click multiple invoices
  • Click on the Add Button(+)
  • Each row will be numbered automatically
  • Choose an area to fill information

Duplicate invoice

When you have to send the same invoices to multiple customers, then a “duplicate invoice for multiple customers” option will help you.

  • Go to duplicate invoice for multiple customers
  • Select the customer you want to send
  • Click next, the invoice of each customer will appear in multiple invoices window.

How to add company logo in the proforma invoice in QuickBooks

This feature allows you to add your company logo in the invoice so that customers can recognize you easily.

For website

  • Select invoice in the menu
  • Click create invoice
  • Go to edit work info
  • Upload the logo and save it (.jpeg or.png format)

For app

  • Select settings
  • Go to your work info
  • Edit logo
  • Upload logo and save it(.jpeg or.png format)

How to correct payment applied to the wrong customer

There are some possibilities when you receive payment from the wrong invoice and want to fix it to the correct one. For this, you will have to apply for a journal entry. This process is easy yet effective for your payment issue.

Here are the steps to create a journal entry

  • Go to create an icon, click other, select journal entry
  • Receivable account
  • Credit amount which has to transfer
  • Name the customer, you are transferring money from
  • Select save and close

How the payment will be done in a correct invoice

  • Go to create icon > receive payment.
  • Verify the journal entry in the credit option.
  • Click open balance account
  • Save and close.

Conclusion

We hope you find this blog helpful to create Proforma invoices. In QuickBooks proforma invoice doesn’t make a necessary vale always, but use as a part of a sale procedure. your all doubts and query about how to make a proforma invoice in QuickBooks will be sorted. If you still have the doubts then you can call our toll-free number +1-888-461-1336 for assistance at any time. our QuickBooks ProAdvisor team will be happy to help the customers like you.

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