Invoice Builder: Proforma & Commercial Invoices

A proforma invoice is a preliminary trade document the seller issues before a sale is finalized. It looks like an invoice — parties, goods, quantities, prices, currency, and terms — but it works as a structured offer rather than a demand for payment. Buyers use it to confirm the deal internally, arrange financing or a letter of credit, and in many markets to apply for import permits or pre-shipment approvals.

Because nothing has been sold yet, a proforma invoice is normally treated as a quotation. Once the buyer confirms, the same details flow into the order and, later, into the commercial invoice that documents the actual transaction.

A commercial invoice is the document that records the actual sale between exporter and importer. It is one of the core documents in international shipping: customs authorities use it as a basis for classification and valuation, banks reference it in documentary payments, and it travels with the transport documents through clearance at destination.

A clean commercial invoice states who sold what to whom, at which price and currency, under which Incoterm, and how payment is arranged. Inconsistent or incomplete invoices are one of the most common reasons customs queries delay a shipment, which is why the details deserve care before cargo moves.

Timing. The proforma comes before the transaction is confirmed; the commercial invoice comes after. Purpose. The proforma supports the buyer's decision and pre-shipment formalities; the commercial invoice documents the sale for customs, banks, and accounting. Status. A proforma is generally a quotation and does not by itself create a payment obligation; the commercial invoice records the amounts actually due under the agreed terms.

In day-to-day trade the two documents often look nearly identical — same parties, same goods, same prices. That is intentional: a well-prepared proforma means the final commercial invoice can be issued without surprises, and both stay consistent with the packing list and transport documents.

1. Exporter and consignee. Full legal names and addresses, with contact details. 2. Invoice number and date. A unique reference customs and banks can trace. 3. Description of goods. Clear, specific wording — generic descriptions invite customs queries. 4. HS code. Add the tariff classification when known; it drives duty treatment at destination. 5. Quantities, unit prices, and totals. State the unit, price per unit, and line totals in one currency.

6. Incoterm. The agreed term (EXW, FOB, CIF, DAP…) defines which costs sit inside the invoice value. 7. Payment terms. Advance, balance, or documentary arrangements. 8. Amount in words. Many authorities and banks expect the total written out. 9. Bank details, declaration, signature, and stamp. Close the document with the seller's account information and an authorised signature.

Requirements differ by destination country and by transaction, so the receiving customs authority remains the final reference. MIDTRANS reviews shipment documentation as part of quote and clearance preparation.