A pro forma invoice is a preliminary, non-binding document a seller sends before goods or services are delivered. It states the expected price, quantities, and terms so the buyer can arrange payment, secure financing, or prepare import documentation. It is not a demand for payment, and unlike a commercial (tax) invoice, it is not recorded as a receivable in your accounts.
How it works
The seller issues a pro forma invoice once the scope of an order is agreed but before it is finalized. It looks much like a standard invoice, listing line items, unit prices, currency, shipping terms (often Incoterms), and any taxes or duties, but it is clearly marked “pro forma.” The buyer uses it to review costs, open a letter of credit, request internal purchase approval, or file with customs. When the order ships, the seller replaces it with a commercial invoice, which is the binding record for accounting and tax.
Why it matters
For B2B sellers, a pro forma invoice bridges the gap between a quote and a firm order. It gives the buyer a precise, itemized figure to act on without committing either party to the sale, which is useful when the buyer needs paperwork to release funds or clear goods across a border.
In Shopify B2B quoting
Shopify does not have a native pro forma invoice object, so merchants often approximate one with a draft order. In a quoting workflow, you agree pricing with the buyer, then send a document they can hand to their finance or logistics team before checkout. A draft order that converts to a paid order at acceptance covers much of the same ground. See the B2B quoting glossary for related terms like draft order and quote.
Example
A UK distributor asks a US supplier for 500 units. The supplier sends a pro forma invoice showing unit price, freight, and estimated duty so the distributor can arrange a wire transfer and pre-clear customs. Once paid, a commercial invoice follows with the shipment.